International strategy consulting firm PTOLEMUS Consulting Group has published the most comprehensive report ever written on Insurance Telematics.
With over 2 million customers, the Pay As You Drive (PAYD) market has reached its tipping point. We expect it to be multiplied by 50 by the end of the decade. Telematic-enabled policies will then generate €50 billion in premiums to insurers who have seized the opportunity.
This is good news for consumers worldwide. Low mileage- and safe drivers will stop subsidising fraudsters, road warriors and dangerous drivers. And save up to 50% on their car insurance premiums.
Frederic Bruneteau, Managing Director, describes the impact for insurers:
"Everybody has a plan until they get punched in the face, famously said Mike Tyson. Well, this is what could happen to numerous motor insurers if they do not reshape their strategy swiftly. The Internet is revolutionising all sectors and this is now the turn of the auto insurance industry. By enabling insurers to build their pricing based on the actual, real-time behaviour of drivers, PAYD redefines entirely the way to charge for motor risks. Underwriters must adapt to the new connected way of doing business.
After Italy, the wave is now reaching the UK and the US, where Moody's recommended underwriters to "adopt it sooner than later". We expect all developed countries to embrace the new model, with local technology- and business variants."
The 400-page strategic report is set to become the industry’s reference document, covering the global car insurance landscape, new telematic technologies, how they are turning the economics of the market upside down, response strategies for insurers and much more.
A free 60-page abstract of the study is available at www.ptolemus.com/insurance
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