Dear Ladies and Gentleman,
The consulting company A.T. Kearney has published an article, short but comprehensive, on the Usage Based Insurance. I would add three factors that can have a major impact: first, as we discussed in an earlier publication, is the possibility of not using the telematic terminal permanently. Secondly is the response of the forfait (flat rate limited) as an alternative product and third is the important niche that make up fleet vehicles.
In France we have been observing that, given the good reception of emerging projects based on telematic systems, several companies have chosen to offer kilometer forfaits, insurance policy limited for a number of kilometers (typically about 8000), AXA and Allianz, the two major European market leaders, have joined this trend. It’s hard to imagine the consequences this will have, because if it is true that there is a relation between the mileage and risk, so is that the correlation is much stronger with other data as when do you drive, the type of route by which it is moving or the violence of the maneuvers. Companies who make use of this solution could incur in the risk of adverse selection to the market.
On the subject of fleets, is a market that is developing slowly and quietly, while the market potential is the tenth part of that of the general public, has a special quality connotations derived from its social and economic importance, that turns it into an easily accessible market niche.
Recall that Aviva sold this product before the wellknow PAYD policy and when canceled it, continued to develop the fleet market with its product Fleetwise Care.
Can you imagine who’s the current provider of telematic equipment? Octo Telematics … of course!! Who, incidentally, just won an award from Frost and Sullivan !!
Now, Octo has exceeded the previous leader Qualcomm in the number of aftermarket terminals installed. And this one finally wakes up with a development for insurance companies.
The activity of the technology companies is frenetic, the ones who have submitted the latest news are:
Agnik, Continental, Walsh Wireless, Mobile Devices and Numerex.
I want to highlight two very creative proposals, which I believe they have the potential to be developped very positively, the first based on augmented reality and the another, presented by Ars, in face recognition.
But the real telematics leader is GM with its OnStar system, which is taking action against the imminent onslaught of competitors who have developed similar products, once they begin to have a clear government support.
I remind you that you can access to a more comprehensive list of news compiled in the last month in http://salvador-minguijon.es/home_archivos/Pay_as_you_drive_directory.htm .
As always, I have upgraded my “Pay As You Drive Directory” and my News Bulletin.
If somebody wants thar their address is erased of my distribution list, please return me this message with the word “DELETE”.
Yours sincerely.
Salvador Minguijón Pérez.
Interim Management.
+ 34 649 49 17 70
+ 34 976 59 58 71
Email: s.minguijon@salvador-minguijon.es
Web: http://www.salvador-minguijon.es
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