(Image source: BMW.)
CSC (Falls Church, Va.) has launched a new usage-based insurance (UBI) and telematics offering to support their insurance clients’ pricing new products based on driving behaviors. The new offering incorporates digital claims, policy administration and underwriting solutions from CSC with driver profile software from Scope Technologies (Johannesburg). The vendor reports that the new offering is currently in pilot by a Philippine insurer.
CSC characterizes its new UBI program as a platform for insurance carriers to build longer-term, more profitable customer relationships, using features such as “pay-how-you-drive” risk assessment and underwriting, which enable them to more precisely match premium to individual driver risk. The program includes immediate crash detection and accident recreation designed to identify fraud and speed the claims process.
The vendor asserts that it is the first provider to offer an end-to-end telematics solution with insurance and claims management support on an advanced actuarial platform. The offering is available as either an outsourced solution or integrated into an insurer’s current technology, CSC reports.
“Many telematics pilot projects have been slow to take off as insurers struggle with complex and costly implementations,” comments Thuy Osman, research and consulting manager, Novarica (Boston). “CSC and Scope’s collaboration to address the problem should help accelerate an insurer’s ability to bring telematics-based products to market and continue to drive the growth of UBI.”
Power to Fundamentally Change the Insurer/Policyholder Relationship
Extending the Internet of Things to automobiles through in-car devices, smart phones and ultimately the connected car enables a range of new services that have the potential fundamentally change the insurer/policyholder relationship, according to Phil Ratcliff, VP and general manager of CSC’s Global Insurance Industry segment. “Data collected with telematics devices creates a big data resource that enables insurers to more appropriately price risk, thereby helping them to focus on selecting, underwriting and serving the most profitable customers,” Ratcliff comments.