Business management can be hard work, especially if you’re trying to make your mark in the more volatile industries, such as insurance. Insurers have to deal with a competitive environment, which is even trickier when you consider how challenging it is to get people excited about insurance.
As such, insurers tend to develop a no-nonsense, consumer-centric strategy that tries to ensure they can meet the needs of their clients ASAP. In this case, the best tool companies have is the use of real-time data to help assess risk better.
The best example of how real-time data benefits insurers
If you’re looking for the ideal example regarding the benefits of real-time data, you need not look further than intelligent UBI telematics. Telematics through usage-based insurance is about gauging driver behavior with the use of a device. It utilizes real-time data to figure out if the driver is doing everything they can to promote safe, best-practice driving methods. One of the benefits of safe driving is you end up saving more fuel in the long run, but the real advantage comes from usage-based insurance.
Not only does it lower the risk of accidents concerning the driver and other people on the road, but it also shows the insurer that they’re worth trusting. As such, the pricing model lowers as the drivers learn to take better care of their vehicles. It’s undoubtedly the best example of how real-time data benefits insurers, as it’s one of the only flexible pricing models for insurance available today.
It’s the reason why UBI is one of the most popular insurance tactics, as it’s one of the few policies business owners can actually get excited about.
Real-time data empowers both the company and the end user
There’s no denying that focusing on real-time data empowers both the company and the end user in a multitude of ways. For the former, it gives companies more options to provide flexible pricing for their clients. They can also market it as a flexible product, which most people tend to choose over other types of marketing. In the case of the latter, the end user has the capacity to choose what they want and pay only for what they use. Telematics insurance is the goal, as it’s an insurance option that actively uses real-time data to provide the most accurate pricing. For the moment, it only works with car insurance, though it’s only a matter of time before it starts to expand.
A better future for insurers
Insurers have always fought an uphill battle when it comes to marketing and trying to get people interested. These days, the only thing that will get people interested in insurance policies is if they’re consumer-centric. Fortunately, telematics has paved the way and allows even startup insurers to potentially make the most out of the situation and rise through the ranks.
Real-time data is undoubtedly essential for insurers in this day and age. It’s the only way insurers can compete with the very best to get the attention of their target demographic. What telematics UBI has achieved is currently the ideal scenario for just about any insurer.