Auto insurers, inform your driver risk assessment at-quote

Key takeaways

Telematics data enables more accurate pricing at quote.
Without driving‑behavior data, insurers risk inaccurate pricing and higher costs. Telematics allows them to assess risk upfront and price customers more precisely.

Using driving data at quote helps insurers avoid long monitoring periods.
Pricing directly from telematics data eliminates delays and increases pricing stability for consumers.

Personalized pricing improves customer experience and retention.
Delayed risk assessments may lead to price increases later, leading to customer dissatisfaction and reduced loyalty.

Telematics-informed pricing drives long‑term business value.
Insurers can reduce claims expenses, increase customer lifetime value, and build a more profitable book of business by avoiding underpricing risky drivers and overpricing safe ones.

Arity’s large-scale driving data adds competitive advantage.
With over a trillion miles of collected driving data, Arity provides insurers with a robust resource to benchmark and improve risk prediction at quote.

Introduction

To improve profitability, it’s essential for auto insurance carriers to possess the risk data they need to price customers more accurately.

But without the right resources, you can’t accurately assess customers at quote because you might need to gather new data. The result? Inaccurate pricing and unnecessary costs.

Telematics data allows you to determine a personalized price upfront that benefits both you and your customers. While your customers are priced fairly based on their actual driving behavior, you can increase profitability by pricing more accurately. In other words, telematics data adds efficiency and accuracy to your pricing process.

While your customers are priced fairly based on their actual driving behavior, you can increase profitability by pricing more accurately.

Improving the customer experience

As costs rise for customers and insurers, personalized pricing based on actual driving behavior data is a proven way to meet customers’ high expectations. Without it, you’re less likely to attract and retain good drivers who want their driving behavior reflected in their pricing at quote. Instead, you may find yourself with a book of drivers who have a different risk profile than you intended, leaving profitability up to chance. In an Arity webinar, Robin Harbage said, “It is game changer to me the idea that, at point of sale, you then give somebody a price that is absolutely more related to the risk than what’s ever been available before.”

Long monitoring periods that lead to delayed risk assessments offer no visibility into profitability at quote. Then when price increases occur down the line, you risk customer dissatisfaction. But when your pricing process is tied directly to actual driving behavior, you’ll build customer loyalty while ensuring you are accurately pricing every driver.

Driving long-term benefits for your organization

Beyond accurate upfront pricing and better customer satisfaction, telematics pricing at quote generates long-term value for your business. By leveraging telematics driving behavior data, you can avoid underpricing unsafe drivers and overpricing valuable customers. With better drivers in your book of business you’re better positioned to reap several long-term benefits:

Lower expenses: Avoid the unnecessary claims costs that come with bad drivers.
Increased average customer lifetime value: Find and retain the most valuable drivers.
Long-term profitability: Do business with drivers that improve your bottom line over time.

Henry Kowal said in an Arity webinar, “[Telematics] is a great equalizer. So whether you’re a large insurance carrier of mid-sized or a smaller sized tier, it levels the playing field for all carriers.”

“It levels the playing field for all carriers.”

How Arity can help

Since its founding in 2016, Arity has collected more than 1 TRILLION miles of driving data. With insights on more than 30 million U.S. drivers, plus access to tens of thousands of actual loss claims, Arity can provide auto insurers with unmatched breadth and depth in driving behavior data.

Arity IQ℠ helps you price drivers with individualized Drivesight® scores that reflect actual driving behavior. This technology enables you to price customers upfront with driving behavior insights on tens of millions of drivers.

Our solutions provide the stability you need at quote to make sound pricing decisions across the board.

Start taking advantage of upfront pricing with Arity IQ℠

When you have the data you need at the time of quote, your business and your customers benefit. Arity IQ℠ takes the ambiguity out of pricing with driving behavior data that empowers you to price confidently.