Technology key to motor success - Towers Watson

Mastery of technology is becoming increasingly important to motor insurers’ competitiveness, according to actuarial consultancy Towers Watson.

Increasing pressure on motor insurers to support improved driver safety and bring claims inflation and costs under control is putting technology centre stage, the company said.

“Already, the recent expansion in companies offering usage-based insurance (UBI) policies, based on in-car telematics devices, is putting those companies without a UBI proposition at risk of eventually being left with the ‘bad’ risks, particularly among younger drivers,” said Tony Lovick, director of analytics for Towers Watson’s DriveAbility UBI programme.

However, he added that UBI was just the beginning, noting the Association of British Insurers’ recently announced priorities for the motor industry in 2012. These included reducing young driver deaths, whiplash claims, fraud and uninsured driving. “Existing technologies can certainly help towards these goals,” noted Lovick.

As well as monitoring and providing feedback on driver behaviours, telematics devices can be used to record whiplash incidents, Lovick said. Other applications of the technology, such as automated emergency and breakdown calls, would help customers and support safety objectives, he added.

Towers Watson also contends that mobile technologies are also likely to play an increasing role in competitiveness. “The launch of price comparison apps by Moneysupermarket.com and Confused.com are a sign of things to come but who says that, as vehicle wireless connectivity improves, they have to stop at pricing,” Lovick said.