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Thread: Telematics and motor insurance

  1. #1

    Telematics and motor insurance

    MUA, a specialist Insurer for high-value vehicles, have issued the following:

    Vehicle telematics devices - which use technology to send, receive and store real-time driver behaviour data - are fast becoming the most effective and scientific way to calculate motor insurance premiums. As Telematics is enabling insurers to gain a more accurate picture of the motorist’s driving behaviour, motor insurance premiums can now be tailored to the driver’s individual risk behaviour.

    Already highly adopted internationally - with research indicating that by 2017 there will approximately 89 million global insurance telematics users - consumers, particularly those who practice good driving behaviour, are becoming more aware of the technology and the benefits of calculating premiums that are more tailored to their specific usage of their motor vehicle.

    This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says insurance is all about measuring and calculating risk. “Insurance underwriters evaluate the level of risk and then set premium rates and coverage according to the measurement in question. In the past, premium calculations depended largely on basic information, such as vehicle characteristics, use of the vehicle, location and driver details including past driver history, age and gender.”

    “Through the use of telematics devices, the type of data that can be collected by a telematics unit includes, but is not limited to: excessive speed throughout the journey; swerving and sudden manoeuvres; mileage travelled; time and date of travel; and the vehicle’s actual speed versus the average speed of all other vehicles, which can help ascertain whether a vehicle is speeding, but still driving consistently with other road users.

    Fourie says this technology now allows for premiums to be determined by actual driver performance, resulting in a far more accurate depiction of driver behaviour and ultimately results in fairer rates being charged for law abiding, fuel-conscious drivers.

    “Traditional methods of calculating motor insurance premiums have resulted in good drivers being charged more than they should be for their motor premiums because they are, to a certain extent, paying for the increased risks that bad drivers present. Telematics now allows for a more objective and personalised premium calculation where good drivers are actually rewarded for their safer behaviour,” says Fourie.

    Fourie says in addition to the benefits of accuracy of premium versus driver risk, there are other advantages for motorists who utilise telematics technology. “Due to the fact that the device allows for continuous communication between the driver and the insurance provider, value-added benefits such as immediate emergency notification and services, road side assistance, vehicle tracking, driver monitoring and vehicle diagnostics are now more easily available.

    She says first notification of a loss is a hugely positive component of the telematics proposition. “When a vehicle has a potential incident, the force of the impact is detected by the device which then sends an alert to the emergency service centre to contact the customer to find out if they need assistance. Given South Africa’s high accident rate, this makes telematics highly beneficial from a personal safety perspective. In exceptional circumstances, telematics could prove the difference between life and death - if an alert with very high G-force impact is received, which has occurred in a potentially hazardous place, and statistical data indicates that the car is stationary and the ignition still on but there is no response when attempting to contact the customer, emergency services can be dispatched to the scene immediately.”

    MUA Insurance Acceptances, in partnership with Tracker, is now offering MUA clients the option of installing the ‘out of sight’ telematics device into their motor vehicles to benefit from premiums that are based on their specific driving behaviour. MUA telematics clients will be able to view and access their unique driving behaviour statistics via a personalised online dashboard hosted via the MUA website giving them 24/7 access to their unique data anytime, anywhere.

    Tracker is not only the largest and most successful vehicle tracking company in the country, with more recoveries and more arrests than anyone else in the industry, but is in fact the pioneers of this particular technology offering in South Africa.

    MUA is offering a starter discount of 10% upfront on the annual premium as well as low mileage discounts including: a 20% reduction in premiums for 0 - 5000kms per year; 17.5% discount for 5000 - 10 000kms per year, a 15% saving for 10 000 - 15 000kms per year and 12.5% for 15 000km – 20 000km per year. When it comes time to renew, MUA can tailor the client’s premium according to their actual driving behaviour - placing the power of lower premiums in the hands of the client.

    “Telematics creates an incentive to encourage safer driving on our roads, as the better one drives, the more they are rewarded in the form of premium reduction. It will not be long before most insurance providers in South Africa will be including telematics technology in their product offering - telematics is the future of the motor insurance industry,” concludes Fourie.
    PHIL COOPER
    Phil Cooper Insurance Brokers (Pty) Limited
    198 Jutlander Road, Beaulieu, Midrand.
    PO Box 31114. Kyalami, 1684.
    (P) 011-702-1328 (F) 011-702-1360 (C) 082-903-4754
    www.philcooper.co.za
    Authorised Financial Services Provider - Licence No. 17239

  2. #2
    Big brother is watching you...

    Discovery Insure is using it already. What if a car is shared between drivers?
    Houses4Rent
    "We treat your investment as we treat our own"

    marc@houses4rent.co.za
    083-3115551

    - Residential Serial Property Investor
    - Specialized Letting Agent & Property Manager (www.houses4rent.co.za)

  3. #3
    Actually, the insurance companies are not doing this to benefit their clients through lower premiums but rather to provide themselves with another way of repudiating claims.

    Tim
    I want a Times New Roman in the streets,
    and a Wingdings between the sheets.

  4. #4
    You are cynical, Tim.

    They could not use this (generally) to repudiate a claim.
    PHIL COOPER
    Phil Cooper Insurance Brokers (Pty) Limited
    198 Jutlander Road, Beaulieu, Midrand.
    PO Box 31114. Kyalami, 1684.
    (P) 011-702-1328 (F) 011-702-1360 (C) 082-903-4754
    www.philcooper.co.za
    Authorised Financial Services Provider - Licence No. 17239

  5. #5
    I am on Tim's side on this one.....
    I am sure that if you were driving at 130km per hour just before the guy from the other lane changed his radio station, loosing concentration on the road, and hit you, they would not pay, as you were outside the law, by driving at 130 instead of 120! The same as when you have 0.4mm tread left on your tires, and you were driving on the same road, and the same guy hit you whilst changing his radio station (again, a slow learner!), from what I know, and yes, I am open to being corrected, the insurer will not pay, as your car was not roadworthy.

  6. #6
    Actually new tyres (a bigger diameter of the wheel) will show a higher speed than bald tyres. Generally bald tyres give you an accurate odometer reading in most cars.

  7. #7
    There is NO condition on a policy saying that if you are driving at a speed in excess of the speed limit there is no cover.
    PHIL COOPER
    Phil Cooper Insurance Brokers (Pty) Limited
    198 Jutlander Road, Beaulieu, Midrand.
    PO Box 31114. Kyalami, 1684.
    (P) 011-702-1328 (F) 011-702-1360 (C) 082-903-4754
    www.philcooper.co.za
    Authorised Financial Services Provider - Licence No. 17239

  8. #8
    Quote Originally Posted by Phil Cooper View Post
    There is NO condition on a policy saying that if you are driving at a speed in excess of the speed limit there is no cover.
    Maybe, but does it say that if you are 'out of law' or your vehicle is not roadworthy, they will not pay? Interesting point through don't you agree?
    Regards
    Nikki Viljoen

    Viljoen Consulting
    083 702 8849
    nikki@viljoenconsulting.co.za
    http://www.viljoenconsulting.co.za
    SKYPE: Nikki.Viljoen

    "If I want your opinion I'll give it to you" or "Lead, follow or get out of the way!"

  9. #9
    Maybe there should be Phil.

    We travel a lot between KZN and South Africa. The number of accidents we witness has escalated alarmingly in the last two years, although people seem to be driving a bit slower (anecdotal).

    However when people speed past us, they do so in grand style. I set my speedo cruise according to the GPS, which is accurate. The speedometer reads 128km/h on fresh tyres. And yet these guys appear from nowhere and fly past at what must be 200km/h or more. If insurers repudiated their claims, they would soon be forced to drive cheaper, slower cars.
    Mark Corke
    Suitegum Sells Businesses
    Mergers, Acquisitions, Rescues, Knowledge

    083 399 2666
    www.suitegum.co.za
    | skype: markcorke | +MarkCorke | LinkedIn | @MarkCorke

  10. #10
    Sharon

    There is a condition that the insured vehicle must be in a roadworthy condition. So that is specific.

    Mark - I agree with you to a point. If the speeding idiot (and I drive with GPS like you - so I know what you mean) - is involved in an accident - maybe the Insurer should turn down damage for HIS part of the claim - don't replace his car. BUT - what of the innocent Third Party whose car is written off?

    My feel is they should pay for the Third Party damage, so he is sorted out - then exercise rights of recourse against the driver.

    But you only need to drive up from Sodwana to see every road rule being broken. Passing on solid white lines, blind rises, blond corners - happens all the time.

    2 weeks ago when driving up, a car overtook +- 20 of us on a double solid white line on a blind rise. The car on front, holding everyone up, was a POLICE CAR - and he did NOTHING when the idiot passed him .
    PHIL COOPER
    Phil Cooper Insurance Brokers (Pty) Limited
    198 Jutlander Road, Beaulieu, Midrand.
    PO Box 31114. Kyalami, 1684.
    (P) 011-702-1328 (F) 011-702-1360 (C) 082-903-4754
    www.philcooper.co.za
    Authorised Financial Services Provider - Licence No. 17239

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