The latest catchword in the car insurance singapore sector is telematics. The development of telematics has blazed the trail for a new type of insurance called Usage-based Insurance, which lets car insurance providers serve and bill customers in consonance with how often they use their cars. Customers are embracing the trending and premium-based items as the mobile technology develops to proffer cutting-edge components that can monitor mileage, driver safety, and vehicle maintenance. Insurance companies avidly espouse the notion of tracking drivers’ behaviour through apps, windshield, and plug-in devices in any combination as a reward for discounts or pay-as-you-go incentives.
In order to appraise insurance rates, various measures, for instance, severe braking and acceleration are integrated with other data and rating elements. Due to its competence to track auto usage either directly or via a smartphone operating a device inside the vehicle, the telematics model gained traction in the auto insurance industry. Following this development, Pay As You Drive Insurance, Control Your Drive Insurance, and Pay How You Drive Insurance, were all replaced by usage-based Insurance.
The Marketing strategies and Customer relationships
The business concept for usage-based car insurance captured the headlines amongst the personal auto industry stakeholders and then the commercial fleet auto insurance segments. At present, leading auto insurers are conducting telematics-based pilot projects all around the world. Telematics in auto insurance is undoubtedly here to stay and will only make our existence better.
By the virtue of this technology, insurance providers might as well be able to sell policyholder contact information to the organisations that want to send them coupons or other marketing materials. User-specific advertisement is not the latest concept and it is swiftly booming in the more interconnected world. This kind of marketing approach is used by several businesses, namely Google, Facebook, and so forth. Telematics device data could be used to track a driver’s location in proximity to particular stores or to send updates on information like when car owners may need to buy a new battery, etc. Pertinent to this data, customised bargains and advertisements might be sent to a car’s entertainment system or a connected smartphone device. This kind of value-added function would make insurance firms money, but it might further increase worries about the hindrance to the consumer’s privacy.
Nonetheless, customised offers and advertisements would be definitely advantageous to consumers. These telematics-based insurances can enhance customer service and claim management, both of which are indispensable in today’s society. The insurance aftermarket for automotive telematics is anticipated to expand in the future as it is to become increasingly popular across the globe.