5 ways to “turbo-charge” auto insurance telematics

In recent years, auto insurance carriers have been navigating a tough “track” with many sudden twists and turns as COVID-19 completely changed driving habits in the U.S. While people drove less, dangerous driving behaviors increased. And even now, despite overall traffic patterns returning, driver risk remains higher than pre-COVID levels.

At ITC 2024, Arity highlighted a way carriers can more confidently navigate the ever-changing insurance landscape with Telematics 3.0. Read on to learn what it is, and how it can be used across a carrier’s entire business to fuel profitability and growth.

The next evolution of driving data

If you attended ITC 2024, you probably saw our high-performance race car, which was coupled with immersive race footage overlaid with real-time driving data. As you can imagine, such a high-speed race environment tests the limits of telematics technology – which gave us the chance to truly showcase the speed and precision of our solutions.

Arity has always been at the forefront of telematics, and now, it’s time for the next iteration to help carriers accelerate success. With Telematics 1.0, the industry got insurance telematics programs. With Telematics 2.0, the industry got new data – originated outside of insurance telematics apps – to be used for pricing new business.

Today, with access to driving behavior data at point of quote, carriers can use Telematics 3.0 to improve every part of their business – all the way from strategy, to marketing, to pricing, to retention, and claims.

5 ways to fuel profitability and growth with Telematics 3.0

#1 Strategy

With Arity’s telematics solutions, which are backed by the world’s largest driving behavior dataset tied to insurance claims, carriers can understand how driving behavior is shifting as it’s happening. As the state of driver risk changes, these insights can help inform faster rate changes and improve customer acquisition targeting, ultimately helping carriers monitor and plan for profitability earlier.

#2 Marketing

This massive scale of driving behavior data can also be used to grow a carrier’s book of business. By leveraging the Arity Marketing Platform, carriers can reach nearly 175M U.S. drivers based on how, when, and where they drive.

#3 Pricing

By partnering with Arity for their telematics programs, carriers can benefit from our unmatched historical understanding of driving behaviors, risk, and outcomes.

• With the Arity IQ℠ network, carriers can access actual driving behavior insights on tens of millions of drivers at time of quote.
• With our telematics mobile app solution Routely®, carriers can gain better insight into their customers’ driving behaviors to identify and price risk more accurately, while incentivizing safer driving habits.

#4 Retention

In a time where price sensitivity is heightened, putting customers in the driver’s seat of their insurance costs (and promising lower rates to safer drivers) can help prevent shopping and switching.

#5 Claims

Telematics programs promote safe driving, which should ideally lessen claims. For instance, Arity helped Southern Farm Bureau Casualty Insurance Company (SFBCIC) minimize distracted driving in just 30 days with its telematics program – where more than 20% of participating drivers reduced the dangerous driving behavior by more than 50%. Additionally, offering a crash detection feature can streamline the claims process, guiding customers through the claims initiation process at first notice of loss.

These five telematics capabilities are made possible through the massive scale of Arity’s dataset, empowering carriers to make smarter decisions across the entire organization. Want to learn more? Download our guide, “Telematics for a disrupted world: How general population data helps insurers respond to shifts in driving behavior.”