The Unseen Passenger: How Telematics Data Is Reshaping Private Passenger Auto Insurance
Insurers interested in tapping into telematics technology can benefit from more sophisticated hardware, speedier communications technology and the widespread use of cloud storage.
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.
Insurers have spent decades attempting to assess drivers' likely behavior. Nothing tells that story like the data generated by telematic devices.
California's enhanced privacy legislation, which took effect in 2020, requires that those who collect data, such as telematics providers, to make that data available to the person being monitored.
