Keeping track of telematics and vehicle tracking

The authors of "Sensor Data and Behavioral Tracking: Does Usage-Based Auto Insurance Benefit Drivers?" showed recently that usage-based insurance decreased clients' daily average hard-brake frequency by an average of 21% after six months, even while the frequency of driving remained unchanged.

"The key results of our analysis show that after usage-based insurance (UBI) adoption, the UBI users improve the safety of their driving, providing a meaningful benefit for the individual driver, the insurer, and society as a whole," the authors said.

The term telematics is a portmanteau, a combination of the words telecommunication and informatics. The science of vehicle telematics is the technology driving UBI and is essentially data recorded by various receptors on your vehicle and smartphone while you drive, which is then sent to an insurer. In simple terms, it is like a black box inside your vehicle.

Recorded metrics include acceleration, braking, and speeding, among others, using an accelerometer and GPS data, explains Belinda Felix, General Manager for Insurance Markets at Netstar, a telematics and vehicle tracking and recovery company.

The tracking unit in a vehicle usually records at 1-minute intervals but during an accident, the unit records at 1-second intervals 6 seconds before the accident, and 4 seconds after the accident. GPS data is also recorded per second – at 1-second intervals, 60 seconds before impact, and 120 seconds after impact.

Felix says that telematics data provides insurers a "dashboard" view of their clients, enabling these companies to fundamentally adjust their pricing model according to the risk level of each client. "Insurers can see at a glance who the high-risk and low-risk drivers are and better manage their book by managing the bad ones and rewarding the good ones," she explains.

So, what happens when the monitored driver is involved in an accident? Can, and do insurers use telematics to assess a claim? And can they use this data to refute a claim?

The above and other questions are answered in the full version of this article in the Netstar CPD Hub. Apply for your sponsored 6 CPD hours by following this link https://gifs.africa/netstar-cpd/. Remember, the CPD deadline is around the corner and seats are limited. Book your seat today!