By: Richard Boire, Founding Partner, Boire Filler Group
As technology continues to empower our ability to conduct analytics with “Big Data”, the “Internet of Things” has arisen as an area where devices themselves capture and transmit data albeit machine-level type data. Let’s discuss some of these devices.
Telematics is revolutionizing the auto insurance industry as devices are placed in cars which actually record the behavior of the driver. For example, how fast am I going, or how quickly do I brake, etc. are all types of behavior that can be captured by the sensors in these devices. In Canada, Desjardins Insurance , a Quebec-based insurance company, has been the most active proponent of this type of technology within the Canadian marketplace. The use of discounted premiums has been one method to promote the use of these devices by its customer base. It is still early days in the use of this technology within the auto insurance industry. But think about the benefits. The ability to collect actual driver behavior is simply going to provide insurance with better information on how to price a given policy based on predicted claim behavior.