Tech Mahindra has announced the launch of Usage Based Insurance (UBI), a big data and predictive
analysis driven platform for auto insurers. It allows them to adjust premiums according to actual usage patterns of individual drivers instead of industry averages.
The platform is flexible to fit to the growing needs of global insurance enterprises, where the market is expected to grow $100 billion plus by the end of the decade.
The solution utilizes the capabilities of Tech Mahindra and AT and T in the areas of multi-vertical, engineering and infrastructure capabilities. As a result of this, the global insurers can reduce their claim costs by up to 20%,while reducing eligible insured driver premiums up to 40%. This Usage Based Insurance solution is hosted on the seamless AT&T cloud and served through AT and T's global Machine-to-Machine (M2M) capabilities.
More: Read Full story here
This technology is already being used successfully for both car and motorcycle insurance in many
international markets such as Canada, France, Norway, parts of Latin America and the US. There have been trials and implementations for government insurers, commercial fleet insurers, driving schools and graduated drivers licensing programs – and these has already proven significant improvements in combined loss ratio s, customer acquisition and service costs and customer retention.
“Pay As You Drive” insurance solutions will be an important growth trend for the next decade. Not only do they respond to the impending need for insurers to design differentiated,
personalised products, they help build stronger, more frequent, engaging and meaningful relationships with customers all while improving underwriting and rating methodologies in what is a highly competitive and commoditised market.
A typical UBI solution implementation timeline is around 6-9 months and consists of the UBI configuration and product design, actuarial analysis and market research, systems integration, website and portal development, launch/rollout and all the related change management support required.
analysis driven platform for auto insurers. It allows them to adjust premiums according to actual usage patterns of individual drivers instead of industry averages.
The platform is flexible to fit to the growing needs of global insurance enterprises, where the market is expected to grow $100 billion plus by the end of the decade.
The solution utilizes the capabilities of Tech Mahindra and AT and T in the areas of multi-vertical, engineering and infrastructure capabilities. As a result of this, the global insurers can reduce their claim costs by up to 20%,while reducing eligible insured driver premiums up to 40%. This Usage Based Insurance solution is hosted on the seamless AT&T cloud and served through AT and T's global Machine-to-Machine (M2M) capabilities.
More: Read Full story here
What is usage based insurance
This technology is already being used successfully for both car and motorcycle insurance in manyinternational markets such as Canada, France, Norway, parts of Latin America and the US. There have been trials and implementations for government insurers, commercial fleet insurers, driving schools and graduated drivers licensing programs – and these has already proven significant improvements in combined loss ratio s, customer acquisition and service costs and customer retention.
“Pay As You Drive” insurance solutions will be an important growth trend for the next decade. Not only do they respond to the impending need for insurers to design differentiated,
personalised products, they help build stronger, more frequent, engaging and meaningful relationships with customers all while improving underwriting and rating methodologies in what is a highly competitive and commoditised market.
A typical UBI solution implementation timeline is around 6-9 months and consists of the UBI configuration and product design, actuarial analysis and market research, systems integration, website and portal development, launch/rollout and all the related change management support required.
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