–How can technology companies or insurance providers identify of risky driving behaviors, reward good drivers, and provide useful driver feedback?
Insurance Telematics An Emerging Opportunity - Report in 2013
Telematics providers have been collecting behavioral data for commercial vehicle fleets for a number of years, offering carriers new insights into safety and risk. For example, carriers interested in reducing risk exposure and improving their reputation for safety have for created applications to enforce company policies, such as bans on the use of cell phones while operating.
For consumers, insurance companies have experimented in the 1990's first with evaluating risks with credit reporting, and in 2000's using Usage-Based Insurance technology to evaluate driving habits and analyze risks, offering discounts for safer drivers. Cars are getting smarter, monitoring driver behavior in real-time and providing feedback.
Such feedback systems that coach drivers have been seen for teen drivers and drivers of electric vehicles that employ "eco-driving" feedback to increase range. For these systems to work, a number of institutional issues, such as regulation and education must be addressed, as must drivers’ acceptance and privacy. This future report looks beyond the issue of driver distraction and focuses on how feedback and insurance incentives may encourage and improve safe driving behaviors.
Contacts for ITS America's Market Analysis
Steven H. Bayless, Senior Director of Telecommunications and Telematics