Smartphone Telematics is More Than UBI - Xemplar Insights

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Connected Car Telematics and UBI
July 14 / Author: Harold Leitner

Smartphone Telematics is more than UBI

No one can deny that telematics derived driver behavior data is one of the best predictors of at-fault accidents. It is also true that driver behavior driven usage-based insurance (UBI) is helping safe drivers reduce their premiums. This is resulting in usage-based insurance spreading rapidly, with most of the top 50 auto insurers offering UBI products.

However, it takes a lot of preparation and ongoing resources to launch and manage UBI products. UBI impacts underwriting, distribution, operations, claims, marketing, and other areas of the business. As a result, many insurers feel that they do not currently have the resources to offer telematics or UBI. That is a big mistake. Smartphone telematics has uses far beyond UBI, and telematics benefits are affordable for insurers of all sizes and budgets. This article will describe two smartphone telematics use cases that would allow personal auto insurers with limited resources to reduce risk and claims

Opt-in Telematics for Driver Coaching

Many insureds don’t think about insurance, or how unsafe driving can increase their risks for at-fault accidents. Carriers who offer smartphone telematics as a free, opt-in safe driving analysis tool are showing their policyholders that they care about their safety. Research has shown that insureds who feel that their insurer is helping them avoid claims, not just manage them, are more loyal and less likely to shop for lower premiums. This approach works best when telematics is bundled with a policy services mobile app to drive adoption. Best of all, the carriers can use the detailed driver behavior analytics to understand the who, what, when, and why risk is occurring in their book-of-business, and to develop rating factors for future UBI products.

Telematics for Safe Driving Incentives

Fewer accidents are a powerful motivator for drivers to use smartphone telematics, but many insureds want other types of incentives to reward their safe driving. Insurers have found that gamifying safe driving and rewarding safe drivers is cost-effective, and does not require filed products. Examples include gift cards, coupons, sweepstakes, and other incentives. Smartphone telematics can be used to target the driving behaviors that are causing the greatest risks, like phone usage and speeding. Incentives can then be offered to drivers who reduce these high-risk behaviors. Many of these incentives can be delivered to policyholders via push notifications in the mobile app, removing the need for the physical delivery of incentives.

Limited resources are no longer an obstacle to implement Smartphone Telematics

Xemplar Auto 3.5 has been designed to meet the needs of all personal auto insurers, even those with limited time, money, and personnel. With low-cost turnkey options for POCs and start-ups, to fully customized telematics mobile apps with policy self-service features, or a build-your-own telematics SDK, Xemplar Auto 3.5 is the right choice. Insurers can choose the approach that best suits their needs without having to break the bank.

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SK Tirumala

Harold Leitner

VP, Business Development

With over 25 years of technology sales, business development, and account management experience Harold leads Xemplar’s business development team. He has successfully driven business growth for early stage technology providers across a range of industries including e-commerce, finance, IOT, connected fleet technology and telematics. Harold holds an MBA from Northern Illinois University and a degree in International Business from Illinois State University.

SK Tirumala

SriKrishna “SK” Tirumala

CEO & Co-Founder

Over the last 24+ years, SK has been at the forefront of delivering technology solutions in Property & Casualty. For the last few years, he has been spearheading the development of risk management solutions at Xemplar Insights, LLC. As the head of the business, SK passionately leads R&D and product engineering teams to advance the Xemplar product portfolio. He is continuously associated with customers, prospects and industry partners in solving their chronic business issues with cutting-edge technology.

Xemplar Solutions Suite

Xemplar Auto
XEMPLAR AUTO is a comprehensive mobile, cloud, and web solution that enables personal auto insurers to close gaps in their digital capabilities. Designed to support loss containment strategies using state-of-the-art smartphone telematics, it can also include policy self-service capabilities to drive adoption and lower servicing costs. Insurers get a powerful analytics portal to analyze where, when, and how risk occurs in their book of business. Granular data can be used develop new rating variables for Usage Based Insurance (UBI).

Xemplar Engage
Personal and Commercial P&C policyholders value the ease-of-doing business with their insurers over mobile and web channels. They are attracted to insurers with better digital capabilities for convenience and better service. Insurers understand that building relationships and creating loyalty with policyholders is key to their on-going profitability and success. The Xemplar Engage solution enables insurers to rapidly innovate and advance their digital transformation strategy with self-service features on mobile and web channels, resulting in significant competitive advantages with improved customer experience.

Xemplar Fleet
Xemplar Fleet is offered to Commercial Auto Insurers (small businesses to large fleet owners) as a white-labeled fleet risk reduction solution which can be offered to insured accounts, as their insurer’s solution to control claims and losses. The solution is made of three parts, (a) Mobile app (iOS, Android) for covered drivers, (b) Cloud-based administrative portal for Fleet Managers for each Commercial Account, and (c) Cloud-based administrative portal for the Carrier that oversees the complete set of fleets using the app.

Xemplar Drive
Xemplar Drive – Business was designed as a non-white-labeled option for Commercial Auto Insurers that believe that the policyholders will be apprehensive about using a data gathering solution provided by their insurance carrier. Xemplar Drive – Business would be referred by the insurer to the Commercial Auto policyholders (small businesses to large fleet owners) as a solution for risk prevention and loss control.
Xemplar Drive – Business is also available as a white-labeled off-the-shelf B2C subscription-based solution (SaaS or private) sold directly to Large Corporates, Commercial Businesses, and other Institutions that operate a fleet of vehicles, as a self-administered risk management solution.

Xemplar Drive
Xemplar Drive – Business is a branded off-the-shelf, B2C subscription-based solution sold through distribution channels such as driving schools or not-for-profit organizations to individuals and/or parents of teens as means to analyze driving habits of themselves, or young drivers as they gain driving experience and develop good driving habits.

Xemplar Stack
Xemplar Stack’s suite of licensable and adaptable software feature frameworks, platform architectures, design patterns, and data model assets helps businesses save development time and costs and jumpstart the creation of tailored software solutions for unique business cases.

About Xemplar Insights

Our journey began in early 2015 while experimenting with smartphone technology to analyze motion patterns that led us to develop an innovative and economical smartphone telematics solution for loss containment. We then extended our capabilities to include numerous new features including policy and claim services, and developed turn-key solutions for Personal and Commercial P&C Insurers. Today, Xemplar is an established digital solutions company that offers both pre-configured and tailor-made solutions to insurers and commercial businesses, with many companies using our products and services to drive their digital transformation.

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