In recent years, the Indian insurance sector has witnessed a transformative shift with the advent of telematics technology. This innovative approach, which integrates telecommunications and informatics, promises to redefine how auto insurance is underwritten and priced in the country.
Telematics mainly involves the use of devices installed in vehicles to monitor and transmit data on driving behaviours such as speed, braking patterns, distance travelled, and more. This data allows insurers to move away from traditional risk assessment models based solely on demographic factors and vehicle characteristics to a more nuanced and personalized approach.
THE EMERGENCE OF TELEMATICS IN INDIA
India, known for its vast and diverse automotive landscape, has seen an increasing adoption of telematics-enabled insurance solutions, driven by several factors:
Regulatory Initiatives: The Insurance Regulatory and Development Authority of India (IRDAI) has been exploring the potential of telematics to enhance insurance offerings. Regulatory frameworks are being adapted to aid usage-based insurance (UBI), which aligns premiums more closely with actual driving behaviours rather than statistical averages.
Technological Advancements: The proliferation of smartphones and affordable IoT (Internet of Things) devices has facilitated the deployment of telematics solutions across a broader demographic. Mobile apps and connected car technologies are making it easier for insurers to collect and analyze real-time data, providing consumers with insights into their driving habits and potential cost savings.
Market Dynamics: Increasing competition among insurance providers has led to a push for differentiated products and services. Telematics offers insurers a unique value proposition by rewarding safe driving behaviours with lower premiums, thereby attracting a growing segment of conscientious consumers.
This story is from the July, 2024 edition of Beyond Market.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July, 2024 edition of Beyond Market.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
PRUDENT PRACTICES
Banks worldwide navigate a complex balancing act, steering economies toward growth while safeguarding financial stability through thoughtful management of interest rates and credit risks
RETAIN ROULETTE
Inexperienced investors spin the market wheel, chasing dizzying valuations and risking a bubble burst
UNRAVELED THREADS
Bangladesh's crisis disrupts global textiles, offering India a potential opportunity, but production constraints limit its gains
PASSING THE BATON
Succession planning helps ensure uninterrupted leadership
RISKY BUSINESS?
SEBI's efforts to protect retail investors from derivatives market risks could inadvertently dampen market volumes
INFLATION-PROOF YOUR CHILD'S FUTURE
Inflation might be stealing your child's future, but children's mutual funds can be their superhero
EMBRACE UNCERTAINTY, SAYS MARKS
Howard Marks urges investors to embrace uncertainty, long-term thinking, and focus on controllables, shunning in his memo “The Folly of Certainty”
IMPORTANT JARGON
70% OF INDIVIDUAL INTRADAY TRADERS IN THE EQUITY CASH SEGMENT MAKE LOSSES, FINDS SEBI STUDY
AN ASCENT T'O NEW HEIGHTS
The IMF predicts India's economy to reach 55 trillion by 2047, driven by various economic indicators showing positive growth and government initiatives
CARRY TRADE CRASH: GLOBAL MARKETS REEL
Japan’s Policy Shift Sends Shockwaves Through Global Markets, Including India, as Yen Carry Trade Disintegrates
