Telematics/ Blackbox Insurance

Telematics or user-based insurance is a form of insurance where the insurance premiums are based on the vehicle used, measured against time, distance, behaviour and place. Car telematics has the potential to increase road safety, improve driving behaviour, align insurance premiums with actual need via usage-based insurance (UBI), and boost car-insurance-industry profitability. In the current market-driven, voluntary-use telematics landscape, no country has attained adoption rates that exceed 20 percent.

The technology’s benefits become evident even at these niche levels. For example, most users cite anti theft, lower insurance premiums, and improved driving behaviour as key benefits of telematics today. Its use in the United States reached about 20 percent in 2016, Italy saw 17 percent, and Singapore 9 percent. That same year, global UBI (user based insurance) adoption made possible by telematics expanded to 14 million policies. Multiple players have begun to offer customers telematics devices and solutions.

For instance, some insurance companies bundle telematics devices with their motor insurance policies, car manufacturers may offer built-in telematics devices and customised services to differentiate their offerings from other manufacturers. With ROADRUNR we are providing insurance firms a layer of abstraction where they do not need to design or install these devices or or spend on customer on-boarding. We provide them with a ready-made digital infrastructure along with a large community of drivers to tap into.

This will also enable traditional insurance firms to develop and deploy telematic infrastructure easily and quickly. On the user side, we provide an interface for the users to access different insurance policies to choose from based on their preference and driving characteristics and start saving money using these tailor-made offerings.

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