More complex and intelligent telematics systems in car insurance will eventually replace the rest, predicts Mykola Matyka, head of fleet insurance at INGO, which is implementing a new car insurance system.
Telematics, which has been used by insurance companies around the world for more than 10 years, continues to evolve, including in Ukraine. It all started with a simple scheme based on the "pay as you drive" principle. That is, the cost of insurance depends only on the number of kilometers driven by the car.
"However, recently another approach - 'pay as you drive' - has become more effective and reasonable," says Mykola Matyka, "Thanks to special equipment, the system analyzes a number of parameters during the trip and not only records them, but also motivates drivers to change their driving style."
This approach is more balanced and individualized. It allows you to clearly understand why the user has a particular scoring score and the corresponding insurance rate.
"For example, the system shows that a driver has a score of 90, which means it is safe. For such a driver, the cost of insurance should be lower than the average market price," says Mykola Matyka. "If there are fewer accidents with cars, the number of repairs and downtime decreases. And the less downtime, the more money a car earns. This is especially important for business segments with intensive use of cars."
In addition, telematics systems record the fact of an accident and determine its consequences, which allows the owner and insurer to respond quickly.
Also, thanks to telematics devices, companies with large car fleets can save not only on car insurance but also on consumables.
The insurance product is currently offered only to legal entities, but in the future it will be available to ordinary drivers. According to global practice, they account for 80% of all telematics insurance users.