Smartphone telematics may be an answer to insurers' underwriting woes
Expanding telematics to the masses via smartphones can be the answer to insurers’ mounting underwriting losses while supporting efforts by carriers to price risk more accurately, according to a new consumer study from Cambridge Mobile Telematics.
The November report from the company, which provides turnkey usage-based insurance products for insurers, finds that as consumers continue to drive more, car owners actually prefer companies to determine premiums based on driver behavior, rather than more traditional metrics. Of the 718 drivers surveyed, 73% agreed with this sentiment. By contrast, only four percent view gender, age, marital status and credit score as the most effective tools to price risk.