Vehicle Telematics – a godsend to the Insurance Industry
According to Diamond Management & Technology Consultants, Inc., technology-enabled programs would save 17% of auto insurance losses each year or $20 billion in annual claims payouts. This will also make driving safer. These programs will be well-received because research reveals that almost 8 out of 10 households in the US are open to risk monitoring/reduction devices that collect information about their driving habits. Devices used are called vehicle telematics which use sensing, processing and wireless technology that would hopefully reduce accidents, lower legal costs, improve claims processing and decrease theft and fraud. These devices are preventive measures that would bring huge benefits to motorists and the insurance industry.