Many insurers believe that smartphone telematics is relevant only when driving metrics can be used as rating factors in UBI products. While better loss ratios from UBI are a compelling benefit of smartphone telematics, there are other equally compelling competitive advantages that should not be ignored. Often these benefits alone generate enough ROI to justify telematics.

Most personal auto policyholders understand that driving is one of the most dangerous threats to their and their family’s health. They truly want to drive safely. Policyholders appreciate when insurers offer a driver safety analysis tool that identifies their high-risk driving habits. This alignment of interests builds loyalty leading to higher renewal rates.

Information is power, and telematics data that is analyzed for safety risk can tell insurers the who, what, when, and why of risk. Insurer Analytics Portals identify driver risk profiles so that insurers can take action to proactively reduce losses. Even mitigating a small percentage of losses can have a substantial effect on profitability. Insurer Analytics Portals can also manage notifications or safety campaigns to maximize the ROI of telematics investments. Best of all, when the insurer decides to move forward with UBI, they will have sufficient risk data on their own book to quickly launch innovative new products.

Mobile apps that use the tremendous sensor and computing power of smartphones can “change the game” of customer engagement. For example, mobile app notifications that provide value-added communications to policyholders, such as safety tips and other risk reduction practices. The ability to collect photos, video witness testimony, scan police reports, at the scene of claims. Request roadside assistance with vehicle information and needed-service details with a few taps on the phone. Streamline quotes, claims, and endorsements in unified digital channels.

Mobile telematics is much more than just UBI. Those insurers who invest now will realize immediate and long-term advantages over those insurers who wait for UBI products.