Vehicle telematics devices – which use technology to send, receive and store realtime driver behaviour data – are fast becoming the most effective and scientific way to calculate motor insurance premiums.
As telematics is enabling insurers to gain a more accurate picture of the motorist’s driving behaviour, motor insurance premiums can now be tailored to the driver’s individual risk profile.
Already well adopted internationally – research indicates that by 2017 there will approximately 89-million global insurance telematics users – consumers, particularly those who practice good driving behaviour, are becoming more aware of the technology and the benefits of calculating premiums that are more tailored to their specific usage of their motor vehicle.
This is according to Christelle Fourie, MD of MUA Insurance Acceptances, who says insurance is all about measuring and calculating risk.
“Insurance underwriters evaluate the level of risk and then set premium rates and coverage according to the measurement in question. In the past, premium calculations depended largely on basic information, such as vehicle characteristics, use of the vehicle, location and driver details including past driver history, age and gender.
“Through the use of telematics devices, the type of data that can be collected by a telematics unit includes, but is not limited to: excessive speed throughout the journey; swerving and sudden manoeuvres; mileage travelled; time and date of travel; and the vehicle’s actual speed versus the average speed of all other vehicles, which can help ascertain whether a vehicle is speeding, but still driving consistently with other road users.”
Fourie says this technology now allows for premiums to be determined by actual driver performance, resulting in a far more accurate depiction of driver behaviour, with just rates being charged for law abiding, fuel-conscious drivers.
“Traditional methods of calculating motor insurance premiums have resulted in good drivers being charged more than they should be for their motor premiums because they are, to a certain extent, paying for the increased risks that bad drivers present. Telematics now allows for a more objective and personalised premium calculation where good drivers are actually rewarded for their safer behaviour,” says Fourie.
She says that, in addition to the benefits of accuracy of premium versus driver risk, there are other advantages for motorists who utilise telematics technology.
“Due to the fact that the device allows for continuous communication between the driver and the insurance provider, value-added benefits such as immediate emergency notification and services, road side assistance, vehicle tracking, driver monitoring and vehicle diagnostics are now more easily available.”
She says first notification of a loss is a hugely positive component of the telematics proposition.
“When a vehicle has a potential incident, the force of the impact is detected by the device which then sends an alert to the emergency service centre to contact the customer to find out if they need assistance.
“Given South Africa’s high accident rate, this makes telematics highly beneficial from a personal safety perspective. In exceptional circumstances, telematics could prove the difference between life and death – if an alert with very high G-force impact is received, which has occurred in a potentially hazardous place, and statistical data indicates that the car is stationary and the ignition still on but there is no response when attempting to contact the customer, emergency services can be dispatched to the scene immediately.”
MUA Insurance Acceptances, in partnership with Tracker, is now offering MUA clients the option of installing the “‘out of sight” telematics device into their motor vehicles to benefit from premiums that are based on their specific driving behaviour.
MUA telematics clients will be able to view and access their unique driving behaviour statistics via a personalised online dashboard hosted via the MUA Web site giving them 24/7 access to their data anytime, anywhere.
As telematics is enabling insurers to gain a more accurate picture of the motorist’s driving behaviour, motor insurance premiums can now be tailored to the driver’s individual risk profile.
Already well adopted internationally – research indicates that by 2017 there will approximately 89-million global insurance telematics users – consumers, particularly those who practice good driving behaviour, are becoming more aware of the technology and the benefits of calculating premiums that are more tailored to their specific usage of their motor vehicle.
This is according to Christelle Fourie, MD of MUA Insurance Acceptances, who says insurance is all about measuring and calculating risk.
“Insurance underwriters evaluate the level of risk and then set premium rates and coverage according to the measurement in question. In the past, premium calculations depended largely on basic information, such as vehicle characteristics, use of the vehicle, location and driver details including past driver history, age and gender.
“Through the use of telematics devices, the type of data that can be collected by a telematics unit includes, but is not limited to: excessive speed throughout the journey; swerving and sudden manoeuvres; mileage travelled; time and date of travel; and the vehicle’s actual speed versus the average speed of all other vehicles, which can help ascertain whether a vehicle is speeding, but still driving consistently with other road users.”
Fourie says this technology now allows for premiums to be determined by actual driver performance, resulting in a far more accurate depiction of driver behaviour, with just rates being charged for law abiding, fuel-conscious drivers.
“Traditional methods of calculating motor insurance premiums have resulted in good drivers being charged more than they should be for their motor premiums because they are, to a certain extent, paying for the increased risks that bad drivers present. Telematics now allows for a more objective and personalised premium calculation where good drivers are actually rewarded for their safer behaviour,” says Fourie.
She says that, in addition to the benefits of accuracy of premium versus driver risk, there are other advantages for motorists who utilise telematics technology.
“Due to the fact that the device allows for continuous communication between the driver and the insurance provider, value-added benefits such as immediate emergency notification and services, road side assistance, vehicle tracking, driver monitoring and vehicle diagnostics are now more easily available.”
She says first notification of a loss is a hugely positive component of the telematics proposition.
“When a vehicle has a potential incident, the force of the impact is detected by the device which then sends an alert to the emergency service centre to contact the customer to find out if they need assistance.
“Given South Africa’s high accident rate, this makes telematics highly beneficial from a personal safety perspective. In exceptional circumstances, telematics could prove the difference between life and death – if an alert with very high G-force impact is received, which has occurred in a potentially hazardous place, and statistical data indicates that the car is stationary and the ignition still on but there is no response when attempting to contact the customer, emergency services can be dispatched to the scene immediately.”
MUA Insurance Acceptances, in partnership with Tracker, is now offering MUA clients the option of installing the “‘out of sight” telematics device into their motor vehicles to benefit from premiums that are based on their specific driving behaviour.
MUA telematics clients will be able to view and access their unique driving behaviour statistics via a personalised online dashboard hosted via the MUA Web site giving them 24/7 access to their data anytime, anywhere.