European Insurers Must Act Now To Stay Ahead Of Disruption – It is all about Risk Prediction and Pricing

Forrester Research:   Why read this report?

Vehicle telematics — the integration of vehicle monitoring systems, mobile communications, and information processing — will disrupt the car insurance industry. Telematics-enabled usage-based insurance (UBI) is gradually emerging as a viable alternative to traditional car insurance pricing models.

To stay competitive, eBusiness executives at insurance companies need to define how their firms should react to both the opportunity and the threat. In this report, we provide an overview of the current state of UBI in Europe and examine the strategies that insurance companies have pursued to date. We also explain why and how eBusiness executives need to prepare for disruptive new entrants.

Telematics insurance works by fitting a car with a small device – commonly known as a ‘black box’ – that records speed patterns and distance travelled as well as the type of roads you are using, and when. The technology can also monitor braking and cornering to build up a picture of your driving style.Jun 20, 2012