Telematics is the future of Insurance!
It is also the enabler of total state control of road traffic through the insurance function.
A bold statement indeed, but one you can’t ignore if you are involved in any way with insurance products, rating, marketing, underwriting or claims.
In newspeak telemetrics or telematics is the facilitator for centralised real-time rating based on the optimal behaviour of a risk. We are at the dawn of telemetric based rating systems that will completely rewrite the way insurance policies are distributed, costed and sold.
The full implementation of usage based insurance rating (UBI) for car insurance in the near future UK, is as certain to be adopted as common practice as is the current requirement to wear seat belts or have an MOT certificate of road worthiness. No longer is the collection of data restricted to a fixed unit black box device in a vehicle, but can be collected and transmitted instantly by any GPS equipped mobile connected device.
ORWELLIAN FUTURE ASSURED!
The dissenters may not like it and many will scream that tracking everybody in real time on the UK roads is human rights abuse, but they are wasting their breaths as this decision on total highway control was taken politically many years ago.
The UK is already moving to disassociate itself from the existing European human rights legislation and the arguments for implementation can be weighed socially in favour as opposed to the those of the concerned individual.
Better drivers, less road deaths, crash reduction and frequency, easier to eliminate uninsured driving and the assured promised land of cheaper premiums for those who abide by the standards, are some of the arguments for that are already being bandied about that, if challenged, are bound to win over the majority of the scared central liberal British voter to accept personal tracking as the norm.
4G networks will enable the fulfillment of the plan and those companies involved will earn a constant income from the googles of datastreams that will be transmitting every second from every vehicle on the road, to the insurers ‘big data’ centres.
Like it or not if you want to participate in the big society in the future then you must provide that society with real time big data to monitor, process, rate and charge you for your participation.
There will of course be a certain class of people and VIPs not required to transmit real time data.
Overall the promoters of the technology proclaim, telematics will deliver to Insurers complete control over the product pricing and the risks they manage.
This is called in Newspeak ‘Business Optimisation’, which is another word for business process reorganization through the use of full automation and lower costs through less human overheads and errors and ommissions.
Centralised straight through processing and storage of ever changing accumulating datasets of the risks behaviour are only one part of a complex picture of the control system.
Churning over these large akashic records of driver data are thousands of programs with functions as diverse as warning drivers in real time through a phone app, that driving on a particular road at a particular time is going to cost them so much more; through to real time data analysis models using hundreds of externally integrated databases to make decisions on accepting a risk and pricing a risk.
Claims departments will have a complete picture of the behaviour of both the vehicle and the client and those of any third parties involved, both prior to over the course of the policy and at any event leading to a claim.
It is impossible to walk out the door without leaving a data trail today. Soon your every move, consumption habits, Internet usage and tv preference may be used to decide eligibility and premiums for a whole new range of 21st century protection products.
Keep abreast of the latest developments in the dawn of UBI at http://www.telematicsupdate.com/insurance-telematics/content-package.php. This page includes an excellent slideshow and explanation of the existing use of telematics in car insurance product and premium rating and customer and risk group data mining and profiling.
Author Paul Moran has over thirty years insurance database, process and systems design experience at some of the world’s largest insurance companies, including involvement with initial design discussions for the Police Motor Insurance Database. Paul is currently technical advisor for online specialist car insurance broker http://www.car-insurance.tv