Usage Based Insurance is seeing unprecedented adoption in commercial lines, with sophistication of technology in vehicles giving ‘live’ insight into driver behaviour. This is enabling insurers to price individual driver and fleet policies.
“We’re seeing record levels of connections with our technology, in August alone we saw over 6,000 vehicles adopting our technology for commercial applications. This generates vast amounts of data on how the drivers are behaving on the road so UBI in commercial is a natural ‘next step’ in this evolution.” Commented Simon Marsh, Managing Director of VisionTrack.
A report published by US business, Aite Group, states that the number of commercial-insurance-related installed telematics devices is projected to increase from 2.5 million at the end of 2017 to 120 milllion by 2021.
“With extremely accurate pricing based on live data, it’s no surprise that it’s predicted to move so quickly into the market. There are obvious benefits in cost saving but also the potential prevention of incidents with monitored driver behaviour, ADAS features and live footage in the event of an incident.
“One of our insurer clients has seen a 24% reduction in frequency of incidents and as a result, an 18% reduction in claims costs since introducing this product on like-for-like customers. The technology is incredibly sophisticated and is saving adopters and insurers thousands of pounds. By combining behavioural metrics, driver risk scoring, contextual data and video systems, insurers can build the next generation of insurance solutions for commercial fleets, not only offering a complete picture of fleet performance but an accurate assessment of risk per mile.”
New offerings are increasingly coming into the commercial lines market such as VisionTrack’s VT24/7, a new monitored behaviour and First Notification of Loss (FNOL) service designed to aid prevention and to increase efficiently with insurance claims in the event of an incident.
Speaking about the new service Simon added: “The technology is constantly developing to enhance commercial insurance offerings on the market and VT24/7 is designed for fleet managers looking to reduce the amount of claims, the hassle and expense of dealing with vehicle incidents. They benefit from a seamless behaviour and incident reporting process with VT24/7.”