Smartphone Telematics: A Win-Win Proposition

The National Safety Council reported a 14% increase in fatal auto accidents between 2014 and 2016, reaching the highest total since 2007. More accidents lead to more insurance claims, and thereby more payouts from insurers. As a result, insurers are striving to more accurately measure and stratify the risk associated with their customer base to help lower claims and increase profits. Unfortunately, it’s difficult to accurately assess risk, and many insurers are stuck using traditional methods to determine rating policies. For years, insurers have used factors like credit score, age, gender and location to set rates, but these traditional factors are not adequate alone to accurately stratify the customer base by risk.