Insurance is an industry which requires the ability to manage the risk of its clients on an on-going basis to both optimise premium rates and to minimise loss ratios. With modern telematics technology an insurance company can now monitor a driver’s behaviour and driving habits in real-time and collate statistics to continuously assess the risk profile of the driver.
An insurer can construct a model against which to assess a driver based on many key driving behaviours and habits such as: kilometres driven, in which (high risk) areas a vehicle is predominantly driven and/or parked, the time of day during which a driver is on the road, over speeding, harsh braking and sharp turning. In the case of an accident, information pertaining to driving conditions from pre- to post the accident can be replayed to make certain assessments.
Insurance cover and / or the insurance premium can then be set on a professional risk assessment basis. Insurance telematics also enables the insurer to provide a more customised service (while improving the customer’s safety and lowering claim costs) to his clients.