Check out how AI and telematics are transforming the motor insurance experience

In recent years, motor insurance has gradually become smarter with the use of AI and telematics. It is also expected that AI will reduce insurance operating costs by 40%, while focusing on speed and accuracy. Telematics assist in tracking real-time driving behaviour assisting insurers in providing premiums at fairer rates.

Together, these technologies are gradually changing how insurance works for both customers and companies. Leading digital insurers like acko.com are already integrating these innovations to reshape the insurance landscape. So, keep reading to know everything in detail.

Understanding AI and Telematics in Motor Insurance

Artificial intelligence (AI) and telematics are rapidly changing the functioning of motor insurance. Telematics considers GPS and sensors for tracking a driven car, such as its braking, speed, and distance. This enables insurers to understand drivers' behaviour well. AI further assists in processing this data quickly. It also enables the detection of fraud and the settling of claims faster.

Telematics and artificial intelligence, both help insurance providers to offer considerate premiums, considering their driving habits and not just focused on the type and age of vehicle. Safe drivers are rewarded with lower premiums, while the risky drivers have to pay more. The incorporation of customer support and chatbots help customers quickly, making insurance personalised, efficient and smart for all.

Benefits of AI and Telematics for the Motor Insurance Company

Both telematics and AI have helped to bring key changes among vehicle insurance companies. So, following are some benefits of telematics and AI to keep in mind:

●     Assessing Risks Accurately

Telematic devices generally monitor how fast you are driving, in what situation you are applying brakes and what is your current driving place. AI, on the other hand, continuously checks data to understand whether the driver is safe and following safe driving tactics. Thus, it becomes possible for the insurers to rely on an individual’s driving habits rather than just collecting general information for identifying any risk.

●     Personalised Premium Pricing

Due to AI and telematics, insurers can provide insurance based on usage instead of averages. Good drivers usually receive less expensive car insurance, whereas poor drivers usually must pay more. It promotes safety behind the wheel, offers more information to customers ensuring they pay according to how they drive.

●     Faster Processing of Claims

AI tools can look at the photos, check the reports and almost immediately provide an estimate for the repairs needed. When insurers use telematics, they can find out both the time and the speed of each crash. Processing the claim faster, reducing paperwork and providing an accurate and quick solution for customers all lead to higher customer satisfaction.

●     Reduced Fraud

An enormous amount of money is lost by insurers due to fraudulent claims. AI and telematics analyse claim alignment with real-time information to check if any suspicious activities are carried out. When the information differs, the system alerts. It thus prevents fraudulent claims being allowed, which would have forced innocent policyholders to shell out large amounts in premium.

●     Enhanced Customer Experience

You can contact an AI chatbot or virtual assistant at any time for assistance with your insurance matters. You can expect faster action, less delay and more simplification. Faster support and recognition by the insurer make customers feel more loyal to the company’s services.

Future of Motor Insurance with AI and Telematics 

The future of the vehicle insurance sector highly depends on artificial intelligence and telematics to get smart and customised insurance plans. As the technologies keep evolving, its influence keeps increasing over the years. The use of AI helps insurance providers to detect risky situations on the road and help drivers to prevent getting into any accidents. Whereas, telematics offers insurance companies a new way to determine the safety of drivers.

During car insurance claims, AI inspects the damage videos and photographs, and the telematics accesses event data to prevent fraud. Virtual assistants and chatbots help customers get claims faster and assist in the general process. Because of the incidence of smart technologies in the automobile, people might need a type of motor insurance at that time rather than renewing on a yearly basis. Insurance customers might also expect to get better information, greater safety, and fee management.

Based on all these, motor insurance is going to be more efficient, fair, and helpful with AI and telematics for safer driving and easier insurance processes.

Final Thoughts

When it comes to making the motor insurance purchase and claiming process more efficient, customer-friendly and personalised, the use of AI and telematics is starting to seem revolutionary. From following the fair premium structure to providing effective services, these tools help both the insurers and drivers. As the days pass, more people have started to use these digital tools, making digitised auto insurance the new normal in the market.