Insurance
Location data enhances and optimizes the operations of insurance companies.
Insurance
Location data enhances and optimizes the operations of the insurance sector.
When assessing the risk of loss or accident, vehicle insurance companies evaluate particular attributes related to geolocation as great impact – driver behavior, covered distance, number and frequency of trips and percentage or kilometers driven annually in urban, rural or intercity roads and highways. Based on the historical risk of accidents, crime, vandalism and other similar events in certain areas, the insurance loss risk may change for up to 500% only due to actual location in case all other circumstances relating to drivers and vehicles remain constant.
Currently, vehicle insurance companies have only limited or no access to sufficiently reliable location history data about insured units. According to the research insurance base, they usually base their location history risk assessment on secondary information such as license plate or owner domicile rather than on actual positioning and kilometers traveled in specific areas.
Currently, vehicle insurance companies have only limited or no access to sufficiently reliable location history data about insured units. According to the research insurance base, they usually base their location history risk assessment on secondary information such as license plate or owner domicile rather than on actual positioning and kilometers traveled in specific areas.
Location history data is crucially important for insurance companies as it allows for accurate risk assessment, correct insurance premium calculation, driver behavior evaluation and bonus-malus programs, correct capital adequacy planning for insured risk coverage and regulatory compliance related to precise actual risk evaluation and loss prediction. As the above categories result in hundreds of millions and even billions of potential savings and optimization for insurers, it is clear that location data is of huge value for insurance companies.
If you want to learn more about this potential opportunity, get in touch with our sales department.