Telematics is becoming an attractive sector for large technology companies
Technology companies are beginning to make an entry into the usage based insurance industry, focusing heavily on telematics. Usage based insurance is becoming particular popular where transportation is concerned and auto insurance companies have managed to find traction with consumers with the usage based products they have begun to offer. As large technology firms begin to enter into the market, the insurance tech sector is expected to see major changes in the coming years that could come to define the way consumers and insurance providers interact with one another.
Usage based coverage is gaining popularity among consumers
The usage based insurance sector is becoming quite powerful, especially when it comes to vehicle protection. Consumers are becoming quite fond of usage based policies because they represent the potential for savings on insurance coverage. When it comes to auto insurance, those with usage based policies could pay less for their coverage than those with more conventional policies. Because of this, the demand for telematics technology has begun to increase at a rapid pace and companies like Google and Lexis Nexis are beginning to take steps to meet this demand.
Waze could become a powerful name in the telematics field
Google recently acquired Waze, which developed the Waze geographical navigation application. The Waze app is meant for GPS support, but could have significant potential when it comes to usage based insurance. Because Waze is, essentially, a type of telematics solution, it can be adopted by insurance companies with usage based products, allowing them to keep track of the travel habits of customers and price their policies accordingly. Google itself has expressed some interest in the telematics field, but whether or not it will align itself with insurance providers has yet to be seen.
Competition among insurers puts more focus on telematics
The telematics field experienced a period of stagnation for some years, but has recently begun seeing a serious increase in activity. Insurance companies are beginning to compete more aggressively with one another on matters concerning the affordability of their products. Those embracing telematics and usage based policies are finding strong support from consumers that are interested in saving money.