In a recent interview with leading finance journalist, Fiona Bond, on behalf of a Raconteur supplement published with The Times, our founder and CEO, Aldo Monteforte, considered how telematics is transforming the way that insurance companies attract, retain and work in partnership with their customers.
With telematics-based insurance policies on course to hit 100 million worldwide in the next three years, usage-based insurance is now one of the fastest-growing segments of the auto insurance industry.
The main driver of this transformation is customer demand for a fairer, bespoke premium that doesn’t rely on the indicators of the past, such as age or postcode, and which instead reflects ‘real life’ events and driving behaviour.
Explains Aldo: “Behaviour remains the single biggest indicator of someone’s propensity to claim, and telematics provides an accurate way of capturing a driver’s ability and nuances, such as time of day or mobile phone usage.”
It is this insight into how a customer behaves behind the wheel that has seen The Floow’s products and services in increasing demand as insurance companies seek to capitalise on its market leading approach.
“Data science has a huge role to play in what we do,” said Aldo. “Our multi-disciplinary team of data scientists extract all the relevant data so that we can provide insurance firms with insights into driving behaviour, while providing a driver score. It is the granularity of our data which clients really value.”
As well as enabling insurers to form a long term relationship with their clients based on an ongoing dialogue – rather than only communicating with them at renewal or after an accident has taken place – the data produced by The Floow also helps to educate drivers, leading to smarter and safer driving.
Adds Aldo: “Data can provide positive interventions to create improved driving behaviours; it can notify the driver not only of their performance, but also of events such as speed, braking, mobile usage, erratic movements and crash detection.”
Its commitment to ‘safer driving’ has also seen The Floow develop a number of end-user applications that not only encourage better driving but also enable insurers to provide their clients with an enhanced product offering.
For example Shotgun, a product aimed at the 18-25 year old market, allows users to unlock instant rewards in accordance with good driving. Not only has it proved to be extremely popular but it has also helped to make the young-driver market more accessible and less risky.
In just five years The Floow has already cemented its position as UK leader in the telematics space, now works with major insurers around the globe and recently opened its first US office as it targets the largest insurance market in the world.
Concluded Aldo: “We are only at the beginning of what promises to be a huge turning point for the insurance industry; it is now beyond any doubt that telematics is part and parcel of the operational infrastructure of insurers and that an insurer simply can’t run a modern insurance operation without this type of technology.”
This interview with our CEO and founder, Aldo Monteforte, was featured in the ‘Future of Fintech’ supplement in The Times newspaper, published on Wednesday 27th September 2017. Check out the full supplement here.
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