8 ways telematics will shape insurance agencies in 2017

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The insurance industry is at an exciting precipice.

Telematics is gaining steam as more insurance agencies implementing telematics programs see a positive effect on their bottom line, and more consumers begin to realize the advantage of one of the most prevalent uses of telematics: usage-based insurance (UBI).

UBI programs allow policyholders to voluntarily track their driving habits and share the information with their insurance agency, in return for discounts and incentives for good driving behavior or scores. But telematics and its advantages go well beyond insurance premium discounts.

Related: Designing a UBI program for the ‘average Joe’— and anyone else

New telematics startups crop up every day. However, when choosing a telematics partner to power a UBI program, you should be more data-focused and consider factors such as the following:

Does your partner meet international standards and certifications?
What is the company’s experience in doing so?
What levels of system security and data protection standards are available?
Anyone can gather data; however, only the most experienced telematics providers — those who meet strict standards and know to analyze the data and put it into action for insurers — will dominate the market.

Telematics for value-added services

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