Insuranceciooutlook

Three Advantages of Telematics in Insurance Claims

Pamela Morgan, Insurance CIO Outlook | Monday, March 22, 2021

Telematics can accurately recognize possible collision incidents and enable wireless communication of critical information about an event straight from the vehicle right to the insurance provider.

Fremont, CA: Property and casualty (P&C) insurance companies need to handle internal costs to effectively guarantee sustainable profits and growth. In an insurance company, claims processes can be expensive, representing a significant service function of the insurer. However, it can be financially draining if not managed in a time and cost-effective way.

Claims telematics and telemetry data can dramatically enhance how insurance providers handle and process claims. Telematics can quickly respond to customer claims, allowing an insurer to better their relationships and experiences with clients. It can also allow a claim to be started when a collision occurs, providing an insurer with the tools and resources needed to begin processing a claim at the time of an accident.

Here are three advantages of telematics in insurance claims:

Accurately Help Validate Claims

Telematics help finds claimant injury, injury claims which can be fraudulent or inflated and uses relevant telematics data evidence to question the claim at the initial stage, decreasing processing and litigation costs with significant effect. Telematics also enables an insurer to establish liability and offer factual evidence to defend against fraud and false representation of court cases.

Build Stronger Relationships with Customers

Telematics can help insurers help the policyholder and process the claim and guide the towing service to the policyholder’s requested service center, minimizing the need for lengthy and repeated communications between a customer service team and a client. Also, when the claim is processed quickly, there may my less or no need for a rental vehicle, enabling insurers to save hundreds and thousands of dollars on every claim that can be totaled.

Initiate a Better, Faster, and More Cost-effective Claim

The challenges in the traditional FNOL claims initiation process can be averted by implementing telematics incident detection technology and vehicle telemetry data. Telematics can accurately recognize possible collision incidents and enable wireless communication of critical information about an event straight from the vehicle right to the insurance provider.

Telematics also helps insurers collect various information from the time an accident occurs, enabling them to create an accurate image of what actually happened.

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