Telematics and the Remote Worker
Robert Regis Hyle | April 14, 2014
Until last September, I spent 15 years driving approximately 25 miles to work in the morning and another 25 home each night. There are plenty of people that have longer commutes than that, but that was more than enough for me.
Last fall, I began working out of my home so I was able to enjoy the long, harsh Midwestern winter from the comfort of a second-floor bedroom that I converted into an office. With snowy roads no longer a worry, I also was able to enjoy saving gas money and the wear-and-tear on my car.
Now that I have settled into my routine it occurs to me that after all the miles I have put in over the years I am suddenly an ideal candidate for usage-based insurance. Instead of putting 25,000 miles or more on my car each year I am now putting on about 1,000 per month. I drive short distances to shop, run errands and the normal trips that we all take.
I should be excited about the prospect of possibly saving money on my insurance, but the fact is I’m too much of a dinosaur to make the switch. Part of it is loyalty. I’ve had the same insurance carrier—home and auto—for most of my adult life.
I picked the carrier because I liked the agent (it’s a captive company) and stayed with them because 24 years ago when a storm blew the second floor of my house into my neighbor’s yard the claims experience I went through was the type of positive insurance experiences that any of us would hope to go through.
My carrier isn’t actively competing in the UBI market today, which surprises me a bit because I spend a lot of time listening to experts and writing articles on how insurers will be left behind their competition if they don’t offer some form of telematics. That may well be the case in a few years, though, and as we’ve seen too often, insurance companies are more reactive than proactive.
Some insurers claim they have a billion miles worth of data on driver history through their telematics systems. I’m not doubting their figures, but how much data do we really need to know who is a good risk and who’s a bad one.
Does this data tell you that the driver of another car is in the process of sending a text, or that a radio station was playing the wrong song, or that a few stray deer decided to act like the proverbial chickens and cross the road? Any of those scenarios can cause good drivers to break hard or to swerve their vehicle. Rare occasions like those won’t necessarily brand you a bad driver, but they don’t tell the whole story.
Time will tell if most people will surrender a bit more of their privacy to corporate America in the name of saving a few bucks. It is a tempting offer, but I’m glad for now that my insurer isn’t pushing me toward UBI. The savings may not match the privacy issues just yet, but I’m betting it won’t be long before they do and when that happens I’ll be even more grateful that I’m a remote worker.
- What to Expect from a Digital Experience Platform Implementation
- ITA Pro Magazine September Edition is Now Available
- It's National IT Professionals Day
- Save the Date for ITA-LIVE 2019
- OneShield Software and UrbanStat Work Together to Improve Real-Time Analytics and Risk Decision-Making
- ITA LIVE 2019 - SAVE THE DATE!
- Insurance Technology Association Announces New Editor-in-Chief
- August 2018 Edition ITA Pro Magazine is Now Available
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- 91% of Insurers Have DevOps Initiatives Underway or Planned, Says Novarica
- Sapiens DECISION Expands Insurance Technology Offering
- EIS Group’s Digital Insurance Platform Deployed for Guardian’s Direct to Consumer Business
- Harford Mutual Insurance Company Selects Sapiens’ North American P&C Insurance Platform
- Insurers Starting to Shift IT Spending to Digital and Data from Core, Says 11th Annual Novarica Report
- Paladin Cyber Launches Comprehensive Cyber-Risk Program for Small and Mid-Sized U.S. Businesses
- Catholic Life Insurance in Production with Sapiens’ E-Application Solution LifeApply for Life and Annuities
- Kaboodle Announces New Partner Alliance with SPLICE Software
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA is pleased to present the 2014 Webinar Series. We have many topics for you to choose from and attendance is open to all ITA members. The webinar topics are current and exciting — ranging from predictive analytics to telematics and will focus on the direction insurance carriers need to follow for the future. All webinars are presented by insurance IT professionals along with some of the leading analysts and consultants in the field. There is no cost to attend an ITA webinar. For more information and to register for the webinar, click the “title” of the webinar below.
BLOGS AND COLUMNS
The Insurance Technology Association is pleased to announce that ITA Live 2019 is scheduled for May 5-7, 2019 at the Marriott Harbor Beach Resort and... READ MORE
It has become a common refrain over the past few years to view the practice of enterprise architecture (EA) as something that time has passed by, much... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE
Fraud detection has always been and will continue to be a critical component of claims management. Learning the lessons from current claims Straight... READ MORE
- Vendor Views