There is no doubt that there is a lot of room for improvement in the car insurance industry, particularly around driver profiling, and that advancements in technology will drive this change. Although the approach to provide insurers with additional parameters has merit, if these parameters have not been proven to correlate with real accidents then this information is virtually meaningless for an actuary or underwriter, and this is the mistake that telematic providers are making.
We believe that our approach, in providing insurers with parameters that are relevant, trustable, and proven to correlate with accident rates (using data that is available today) is the only way you can provide insurers with valuable and objective information about the risk associated with a particular driver.
The ability to have more data than the competitor or to be able to get better insights will become even more important than the price. At the end of the day, it is the power of insight that guides business leaders to make smarter decisions and generate greater profit.
It is important to be able to adapt to future and new challenges in the market as quickly as possible in order to ensure the company's continued successful existence. As the current economic situation shows very well: correct timing and a quick ability to adapt are essential.