Car insurance leads may be interested to hear about the development of telematics in the insurance industry as coverage providers place additional weight on this tool.
Telematics measure annual mileage as well as recording when, how and where a vehicle is being driven. This allows insurers to assess a given driver more precisely, with more specific data on their habits on the road in addition to the demographic and statistical information previously relied on.
While that sort of information remains valuable, a report from Towers Watson suggests 89 percent of personal auto insurance providers who plan to or already do use telematics also intend to use the data proactively in rating. More than 80 percent plan to provide consumers with information they can use to improve their driving.
According to many respondents, the use of telematics is improving ratings, loss ratios and profitability. This makes it likely the practice will continue to spread. Agents dealing with auto insurance leads can explain to them the potential a policy has to reward good driving, possibly leading to lower costs when the provider has enough data, as one way to meet consumers' needs during insurance shopping.
