One inspection technology trend that we are seeing insurance carriers embrace is the use of telematics to mitigate risk. Some insurance carriers are now offering Usage Based Insurance (UBI) programs that allow customers to voluntarily track and share their driving habits with their insurance providers in exchange for discounts and incentives.
The advantages of telematics in vehicles extends beyond discounts and incentives for the insureds. Depending on the telematics partner, a “connected car” can share information with drivers about road conditions, vehicle maintenance needs, and vehicle assistance. From the insurance carrier’s perspective, the use of telematics in vehicles can minimize loss exposure and reduce the number of fraud and false claims.
Here are several ways that we’ll see telematics shape insurance agencies in 2017:
- More “connected” cars on the road, leading to better, more conscientious drivers.
- Improved road safety and driver awareness, leading to fewer claims.
- Faster and improved management of claims.
- More insurers adopting UBI programs and marketing them to insureds.
- Transition of policyholder relationship from reactive to proactive.
While the “connected car” will be a key way that insurers can minimize loss exposure on auto claims going forward, the same types of inspection technology can help to mitigate risk when insuring real estate.
We just talked to you in great detail about the rise of the smart home and how this type of technology can be used to report user behavior to insurance carriers to more accurately underwrite risk. For instance, if a property has a security system in place, smart home inspection technology can reveal to insurers if the property owner is actually using the system. Just like the “connected car” is on the rise, we will see more insurers embracing the “connected home” in 2017 in an effort to minimize the risk of loss exposure.
Are you interested in learning about additional ways that insurance carriers will be using inspection technology to more accurately underwrite risk in 2017? We’ve been partnering with insurance carriers in the property and casualty industry for more than 35 years and can offer a wealth of knowledge in regards to how inspection technology will shape the industry going forward. Please contact us at Insurance Risk Services to learn more about how we are using inspection technology to provide property and casualty carriers with more accurate underwriting reports.