Telematics Flashcards
1
Q
describe telematics
A
use of wireless devices to transmit driving data in real time back to an organization
2
Q
potential rating variables from telematics (6)
A
- where vehicle is driven
- number of trips per day
- mileage
- braking
- acceleration
- cornering
3
Q
reasons for increased use of telematics (3)
A
- new digital technology in cars
- widespread use of smart phones
- lower technology costs
4
Q
ancillary services provided by telematics (5)
A
- driver coaching
- vehicle diagnostics
- roadside assistance
- emergency response
- stolen vehicle recovery
5
Q
types of telematics solutions (4)
A
- dongle - self-installed device provided by insurer
- black box - professionally installed device
- embedded in car manufacturing
- smart phone
6
Q
insurer benefits of telematics (4)
A
- more accurate risk segmentation
- new communication channels with customers
- more efficient claims management
- competitive advantages, especially for early adopters
7
Q
challenges working with telematics data (3)
A
- very large datasets
- lack of standardization
- collecting the most useful variables
8
Q
consumer benefits of telematics (3)
A
- possible lower premiums and ability to control premium
- focus on education and promoting safety
- ancillary services
9
Q
consumer concerns with telematics (5)
A
- lack of transparency of models
- privacy concerns over use of data
- limited regulatory oversight
- disproportionate impact on low-income and minority customers
- proprietary nature makes it harder to switch insurers
10
Q
societal benefits of telematics (4)
A
- could eliminate use of socioeconomic variables
- incentives to reduce driving leads to fewer accidents, congestion, carbon emissions, infrastructure costs
- reduction in subsidies, so rates are more equitable
- increased number of insured drivers
11
Q
regulatory concerns with telematics (4)
A
- standards for collecting and reporting data
- consistency among companies
- preventing discrimination or use of prohibited variables
- access to review models
