Octo: Telematics Driven Claims Processing

Gianfranco Giannella, COO, OctoGianfranco Giannella, COO
The auto-insurance industry is lately getting influenced by state-of-the-art telematics that is driving business insights and transforming claims processes. Through installed telecommunication devices or telematics sensors transmitting real time driving data of the user along with a repository of the driver’s performance; it becomes easy for the insurers to measure price premiums and collect crash data more accurately. This helps insurers identify fraudulent claims, and reduce legal costs associated with contested claims. With 5.1 million connected users and the largest global database of telematics data of more than 165 billion miles of driving data collected, Octo Telematics has tailored unique solutions for the auto insurance market. The firm applies advanced analytics to behavioral, contextual and other telematics data to transform the way auto insurance companies assess risk, improve the accuracy of crash notification and claims management while enhancing customer relationships.

Octo’s Proactive First Notice of Loss (FNOL) allows insurance firms to rapidly react to an accident, just moments after it has occurred. The contact can be made with the policyholder proactively to collect as much information as possible and ‘freeze’ the crash scene. Usually, the insurer receives a notification about the crash from the end user. With the variety of sensors Octo provides, this approach can be reversed, and the insurer can become proactive toward the end user. Additionally, getting in contact with the client immediately after the crash will help avoid attempts of fraud and third party interferences, while speeding up the claims management process. The insurers benefit from a significant reduction in the average cost of claims and streamline crash detection process. In turn, positive customer experiences through a more efficient claims process help insurers improve retention rates and lifetime loyalty.

Octo delivers end-to-end benefits across the insurance value chain, from pricing support, crash alerts and reconstruction to web portals for customer engagement.

With a track record of analyzing over 417,000 crashes and insurance events, Octo has created a strong footprint in the insurance industry in Italy, U.K., and North America

The company also works across the entire device spectrum from smartphone apps and aftermarket devices to connected cars with machine learning algorithms that are perfectly placed to support the move towards autonomous vehicles. Octo’s programs also benefit consumers by providing real time usage and behavioral data on a personal ‘dynamics dashboard’ on their mobile. This can help drivers improve their driving, enhance fuel economy, and encourage safe driving awareness. Also, through this data insurance companies can reward incentives to consumers to drive more safely.

With a track record of analyzing over 417,000 crashes and insurance events, Octo has created a strong footprint in the insurance industry in Italy, U.K., and North America. The company has helped a large European insurer to integrate a lot of their capabilities with telematics comprising of 30 percent of policy holders as buyers of telematics management. Its Non-Life Loss Ratio decreased significantly and the number of motor vehicle claims reported reduced by almost 50 percent.

Octo recently launched its Next Generation Platform (NGP) that provides open access and seamless integration of any Application Platform Interface (API), as well as a fully-modular insurance telematics structure through mix-and-match service selection. The platform will help in making new customer acquisition faster, more efficient and open up opportunities for any system integration partners, from budding start-ups to the largest multi-national insurers. The company is also heavily investing in linking structured and unstructured data to automate claims management completely. “We are steering the future of crash reconstruction to be a combination of various structured and unstructured data like weather data, no of passengers, the state of the car, pictures of existing damages, thereby limiting the human intervention only to the specific cases where it is unavoidable,” concludes Giannella.