July 28 / Author: Harold Leitner
Smartphone Telematics is more than UBI (Contd.)
Many insurers are reluctant to offer smartphone telematics because they think it is only good for usage-based-insurance (UBI). This is not true. Smartphone telematics immediately helps insurers take action to reduce risk and better engage with policyholders.
How are insurers using smartphone telematics without UBI? Many insurers are using telematics-based gamification and incentives to reward safe driving because safe driving reduces the frequency and severity of at-fault accidents
Some telematics solutions include gamification features that make it easy for insurers to create games, manage them, and fulfil games prizes. These games might include:
- Rewards – Some incentive for accumulating points accrued from displaying safe driving
- Awards – Badges with stars awarded for various safe driving behaviors
- Challenges – Peer-to-Peer and Insurer-to-Policyholder safe driving challenges. These challenges can be based on overall driving scores or other safe driving criterion
- Push Notification – Messages delivered through the mobile app to update insureds on game status and prizes.
Telematics Based Incentives
Premium discounts are one way to reward drivers for safe driving. However, these may require filed UBI products, and rebate laws can very wildly from state to state. Many insurers are using non-premium incentives to engage with policyholders, enhance adoption, and keep safe driving at the front of their insureds’ minds.
Rewards incentives can really be anything that resonates and motivates the insured to driver safer. Examples are gift cards, coupons, sweepstakes entries, etc. Non-standard policyholders are typically more money motivated, so a gift card might be a great way build loyalty. Standard policyholders may prefer points-based rewards that can be redeemed for various incentives.
Xemplar Auto 3.5 smartphone telematics solution includes robust gamification and push notification features that allow insurers to easily make safe driving gamification a part of their risk mitigation strategy. Xemplar Auto 3.5 offers fully customizable gamification features out-of-the-box. It’s a perfect fit for insurers of any size who want to engage with policyholders and reduce risk.
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