Finance in Focus: Telematics and its effect on the insurance industry
With more than 10 billion devices in existence today—and an estimated 50 billion by 2020—the Internet of Things is creating opportunities for organizations to expand their business offerings, retain their customers and enhance their processes, all with an eye to boosting efficiency and cutting costs. Indeed, the potential effects of doing so are nothing less than staggering—the McKinsey Global Institute expects that the economic value of the Internet of Things will be anywhere from $3.9 trillion to $411 trillion as early as 2025.
Telematics is among the salient use cases for the Internet of Things in insurance. Perhaps your insurance company has described telematics as a way of cutting your car insurance rates depending on the quality of your driving, but such a scheme only scratches the surface. Consider how some insurance providers are using telematics in fleet management, to encourage safe driving and to proactively interact with policyholders.
This installment of the Finance in Focus podcast series features a discussion between IBM insurance expert Tony Boobier and the CEO of Geotab Inc., Neil Cawse, who has worked in telematics for more than 15 years. Neil’s company, Geotab, is the foremost telematics company in the world, as measured in yearly new vehicle subscriptions.
In this podcast, we take a deep dive into the world of telematics to answer questions such as the following:
- What are the different use cases for leveraging telematics in insurance?
- How do machine learning and cognitive computing apply to telematics?
- How is telematics permeating the global market?
- What privacy concerns surround the use of telematics?
- How can telematics be used for fleet management?
- What will the telematics of tomorrow look like?
- How can companies use telematics for automation?
- How can analytics begin to change culture?
Join us in this discussion to find out how you can integrate telematics with big data and analytics in insurance to gain the competitive advantage. For more information about telematics in insurance, explore the following resources:
- 5 ways to leverage telematics for insurance
- Is the automobile telematics use case oversold by US insurance?
- Create new revenue with telematics for insurance
- Telematics for insurance
- Telematics for insurance: Analytic insight is a many-splendored Internet of Things
- How vehicle telematics is changing the auto industry
This week’s host:
Worldwide executive, insurance; IBM Analytics
Tony, the IBM European industry leader for insurance, is a well-known industry commentator and presenter who entered the insurance industry 30 years ago. When he lies awake at night, he thinks about the convergence of insurance and technology, and in the day, he focuses on disruptive technology and financial technology in the insurance sector.
This week’s guest:
Neil is an accomplished business leader, entrepreneur and engineer who has founded and run his own businesses since 1992. In 1998, Neil sold his software development company, which employed more than 100 engineers, to Datatec. Then, in 2000, Neil founded Geotab Inc., now the world’s foremost telematics company in the world, as measured in yearly new vehicle subscriptions.
Geotab has been voted one of the 50 fastest-growing tech companies in Canada, a category in which it has ranked among the top 200 companies in North America for the last four years. At heart, Neil is an engineer, and he brings this passion to the daily engineering and design of Geotab’s systems, believing that Geotab’s success stems from the company’s integrity, its forward-thinking ideals and its emphasis on supplying the customer with the right a personalized.