Telematics. I’m sure you’ve heard the term, but many are still trying to figure out what it is and what it means for their brands. While telematics is gaining traction in the healthcare and auto insurance spaces, its opportunities are limitless as it’s founded on the premise of using data to offer a better customer experience. Here at Epsilon, we’re exploring the best targeting, channels, creative and more for our auto insurance clients. Earlier this month I attended Insurance Telematics USA 2014 in my home city of Chicago, where more than 800 auto insurance and marketing professionals met to discuss the latest and greatest in usage-based insurance (UBI). Speakers representing brands like Allstate, LexisNexis, PwC, Progressive and more took the stage to share their experiences. At the conference it was projected that by the end of 2015 insurance telematics will reach a tipping point in the marketplace. And I agree considering a recent LexusNexis survey found that 79% of consumers said they’re definitely or somewhat interested in insurance telematics. So for those of you interested in the telematics discussion, below are key stats and trends to be aware of:
With telematics subscriptions projected to grow to 100 million by 2018, auto insurance brands are looking to enhance their telematics value proposition, improve customer engagement and differentiate themselves from the competition in their Usage Based Insurance (UBI) programs.
Usage Based Insurance (UBI) is changing the insurer-customer relationship. It’s providing a new strategy to leverage high volumes of behavioral data into segment-specific value propositions that deepen relationships with customers and build loyalty.