A connected approach to automotive insurance

By Joseph Artgole - August 04, 2020

Learn more about how MGA Antilo leverage their digital pipeline and how capabilities can evolve over time.

With the integration of the entire value chain leading to a new way of assessing and responding to risk, Antilo’s data-led platform can provide a competitive advantage in both the short and long-term. Automation underpins all aspects of scale, providing a connected approach that leverages continued innovation and operational benefits.

 

Current capabilities

Connected policies are policies that adapt to the changing conditions encountered by the Insured. This could be by communicating directly with the Insured or automatically updating policy terms. Such capabilities are dependent on real-time data. With all barriers to entry removed between Antilo and its partners, the implementation of automatic FNOL notifications and associated responses now means that operational benefits can be redeemed.

The overall management of FNOL is done through a notification centre that ensures the status of claims are clear to see. Data is captured upon an incident and interpreted by an algorithm to produce a crash report. All telematics and video data available are displayed for use by the claim’s handler, including details on the Insured.

All parties draw value from a fully integrated approach, reducing delays and the time to resolution. By resolving claims faster, costs can be significantly reduced.

Fig 1: An example of the Quest Automotive notification centre

Underwriters can take a proactive approach to exposure through a live view of Insured activity. Due to the nature of the niche Antilo are operating in (taxi drivers) there is legislation in place around business activity. Vehicles are licenced (aka plated) based on districts. Deviance in operation from a legislated location can have implications on cover. Through the active monitoring of driver behaviour, it is clear to see which vehicles are operating within their terms and contributing to exposure. Multiple views, such as a heatmap, allow for an effective overview of a situation.

Fig 2: An example of ranked areas of operation and exposure type

Fig 3: Example of a vehicle location heatmap outlining activity

 

Depending on the circumstances of the driver, measures can be automatically implemented as soon as activity deviates to ensure risk is controlled. Such measures include:

  1. Automated messages that inform the driver
  2. Automated policy updates that ensure adaptation to changing risk

Automated messages can refer to various types of activity, including boundary limits and speeding. Criteria is set within Quest Automotive to determine the thresholds in place before an automated message is sent. Messages are designed to make the driver aware of their own behaviour, allowing them to alter their actions in favour of low risk activity. Alternatively, it is possible for policies to change to pre-arranged terms if activity continues.

 

Future Insurance Models

The real-time nature of data aggregation allows for an always-on approach to protecting the Insured and ensuring cover remains relevant. This is particularly effective for on-demand business models. Given the changing circumstances around the use of vehicles, real-time data can be used to change the pricing model for insurance. Specifically, a move from a yearly contract, to a usage-based model.

With the claims and monitoring infrastructure in place, usage-based models become a clear possibility and offer further diversification to alternative market segments.

 

The Ever-Growing Data Pool

The ongoing intelligence collated and interpreted by the digital environment will continue to increase over time. Antilo’s understanding and ability to segment the market will therefore continue to improve. This view of risk provides a clear advantage over MGA’s who don’t have similar infrastructure in place. Such data leads to the quick identification of potential niches that exhibit emerging behaviours that have been capitalised on prior. Alternatively, it can also offer a perspective on niches that would respond well to new technologies and developments that were previously unforeseen.

 

For an in-depth look at Antilo’s innovative deployment, download the white paper below.

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