A recent Insurance Nerds article highlights an interesting trend in commercial auto telematics adoption.
In one year, the share of insurers struggling to convince large fleets to share telematics data fell from 48% to 24%. Meanwhile, the share struggling to create value from that data rose from 16% to 43%.
Getting access to data appears to be getting easier. But knowing what to do with it remains a challenge.
Consider a fleet that agrees to share its telematics. The insurer receives the data, the broker helps facilitate the process, and the fleet awaits what happens next.
If the insurer has no clear plan for using that information in underwriting or pricing, what can the broker offer? And what does the fleet get in return?
At Draivn, we start with the insurance proposition itself. We work with insurance partners to shape the offering, give brokers something concrete to bring to market, and establish the operating model and technology needed to deliver on it.
This gives telematics a defined role in the insurance process, from the initial underwriting decision through the policy term.
More conversations and easier connections are encouraging. But sustainable adoption depends on what participants can achieve with the information they share.
Our approach to the chicken-and-egg dilemma of telematics adoption:
The insurance proposition has to come before the data request. Give every participant a clear reason to take part, and build the process that allows them to realize that value.
Start there. Then let's see if that 43% looks any different next year.
Looking to create more value from telematics? We'd be happy to help you take that first step. Book a call with our team.
