The Unseen Passenger: How Telematics Data Is Reshaping Private Passenger Auto Insurance
As auto manufacturers build more sophisticated safety devices into their cars, telematics providers will need to access to determine that they are present and operating.
Customers will share their data, but only if insurers are clear about how it will be used and how its use will add value to the customer.
Given that early hackers have shown their ability to penetrate vehicle systems, those setting up telematics programs have to employ state-of-the-art security practices, including revisiting security at each layer of access.
Because many insurers are adopting telematics programs that operate via smartphones, some telematics providers have learned to interpret data that shows if a person is operating a vehicle or sitting elsewhere.
Some drivers will find ways to provide misleading information, such as turning off systems or moving sensors. Insurers have learned to begin monitoring on a short-term basis, then extend programs only when information patterns fall within expected ra
