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The 4 Hottest Automotive Telematics Trends That Will Dominate 2017


What Can We Expect from the Automotive Telematics Market in 2017?

A new year is here and with it lots of news about rising trends in the automotive industry. At the top of the list this year is automotive telematics, or the monitoring of driver behavior for a wide range of purposes, from determining a more accurate insurance premium to learning more about when and where people drive.

So, what can we expect from the automotive telematics market in 2017? Growth, for one. The buzz about the benefits of telematics — starting with usage-based insurance in the automotive market — continues to grow and a feverish pace. More and more insurance companies are shifting their focus away from traditional models for determining insurance premiums for their clients and settling their gaze on usage-based insurance (or UBI).

Why? The reasons are pretty clear by now: first, it allows insurance companies to gain a clearer picture of how their customers actually drive, rather than simply determining a premium based on age, gender, experience, and, rather strangely, marital status. Second, it gives customers the ability to lower their premium by actually driving safely. Third, it helps drivers who might face high insurance costs — such as young male drivers — under traditional insurance models drastically reduce their premiums. Finally, by increasing the transparency of the entire (and previously remarkably complicated) insurance process, UBI helps improve relations between the insurance provider and the customer. For the first time in a long time, the insurance industry is actually starting to make people really happy.

The result: interest in usage-based insurance continues to grow. So prominent are UBI policies now that many industry experts predict that the companies who neglect to introduce them will have a hard time remaining competitive with the insurance firms that make them a key part of their value offering.


1. Value-added Services

Roadside Assistance Program via Mobile TelematicsNone of this is particularly new, however. So, what can we expect from UBI in 2017? This year, expect to see automotive telematics move beyond simply helping automotive insurance companies appeal to their customers. In 2017, one of the big new trends will be to offer a wide range of “value-added services” based on automotive telematics technology such as roadside assistance, vehicle diagnostic and smart maintenance service.

What does that mean? After all, isn’t helping customers reduce the amount of money they pay for health insurance value enough?

For some people, that’s probably sufficient. But automotive telematics technology is capable of doing far more than that. By monitoring the driving habits of policyholders, insurance companies can offer a wide range of programs: for example, special discounts for avoiding driving on bad weather days, in busy parts of the city, or on highways known for dangerous accidents. For those who don’t see their premiums go down as a result of switching over to a UBI policy, automotive telematics can help provide a clear picture of what needs to change in order to see cost reductions. In fact, it’s conceivable that insurance companies could provide customers with a clear report showing how their premium was calculated and what drivers can do — such as driving slower, driving less, or taking corners at a more reasonable speed — to increase their monthly savings.


2. Rise of the Connected Car

Connected Car Trends on the RiseIt’s hard to separate the rise of automotive telematics from the growth of the connected car industry. In 2017, both trends will continue their steady convergence, to the benefit of millions of drivers around the world. Put simply, as cars become more “connected” — through the addition of advanced technologies like wireless internet connections, radar, sensors, touch screens and cameras — the opportunity to take advantage of automotive telematics technology increases.

Today, connected cars are heralded as a wave of the future because many boast the ability to steer drivers away from accidents using tech like lane-change monitoring, rear view cameras and autonomous braking. Given the growing number of automobiles on the road — essentially turning many medium-sized and large cities into pulsating hives of traffic — this technology has the potential to save time, money and, most importantly, lives. It prevents drivers — distracted by phones, billboards, pedestrians and a tidal wave of vehicles around them — from getting in potentially deadly accidents at every turn.

But by bridging automotive telematics and the connected car, more can be done to help drivers. They could warn a driver of upcoming traffic problems on the current route while providing that same driver with a safer alternative route. They could alert a driver to significant weather systems ahead, pointing them to a path that takes them away from the issue or suggesting local hotels to duck in for the night. Finally, they could help emergency teams and insurance companies come to the aid of a driver who’s been in a serious traffic accident.


3. Fighting Fraud

Security for Insurance Telematics Claims FraudEver wonder how an insurance company determines what you pay for your automotive insurance? There are a number of factors to consider and, unfortunately, the lousy behaviour of some rotten apples plays a role in bringing your premiums up. That’s because insurance companies are constantly having to investigate cases of insurance fraud. Sadly, too often people seek to take advantage of loopholes in the system, and the result is often higher premiums for their fellow drivers.

Automotive telematics will start to change that in 2017. By providing insurance companies with a clearer picture of a driver’s activity leading up to an accident, they can determine if a driver’s story holds water. Telematics will give investigators the tools they need to determine how and why and accident occurred and who might have been most affected. In the end, this could help insurance companies respond quicker, helping drivers get back on the road faster. More importantly, however, it has the potential to help insurance companies weed out fraudsters, thereby lowering the premiums for other drivers.


4. Targeting Millennials

Millennials and Insurance TelematicsIt’s no secret that millennials tend to be more comfortable with cutting-edge technology than people of other generations.

That’s why insurance companies will continue to target this age group in 2017 as they seek to increase adoption of usage-based insurance policies based on automotive telematics technologies.

Millennials, who also tend to pay more for their automotive insurance than people from other age groups, also stand to benefit the most from UBI.




Overall, 2017 is shaping up to be a very good year for companies one way or another involved in the automotive telematics industry. For automotive insurance companies, it could help them reduce costs and improve their relations with customers. For customers it could help them cut the price of their insurance, helping them to direct funds elsewhere. For automotive manufacturers, telematics sweetens the deal already offered by rapidly evolving “connected” cars. And for everyone, it could mean safer, more efficient roadways.


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