Could location tech transform insurance?

Could location tech transform insurance? | Insurance Business

Could location tech transform insurance?

Location technology is already being used by the majority of Australians – whether it’s tracking a taxi or pinpointing when a parcel will arrive, the tech is even taken for granted by many consumers.

However, one expert in the field says there are still countless potential applications for the technology – particularly when it comes to commercial insurance.

“There are many sectors yet to realise the potential of location technology and how it can help them improve their operations, revenue streams, customer experience – the list goes on,” says Jon Calverley, an insurance industry specialist at HERE Technologies.

Broker Calverley took on a consulting role earlier this year, leveraging his experience in the market to help HERE showcase how location data can impact insurers and insureds.

“It is important as an industry we are transparent,” Calverley tells Insurance Business. “Location technologies allow us to be exactly this, as it allows insurers, and, importantly, the customers, a real-time experience of tracking a product from the moment it leaves the factory or depot, right through to the product being delivered to the home or office.”

Calverley, who also founded specialist brokerage Fando Group in 2018, says the motor insurance sector will be among those that can reap significant rewards from location technology.

“With insurers being able to collect data out of a vehicle or an associated device, it can provide far greater insight into how their customer is using the vehicle,” he says. “This in turn can provide better options for the insurer and customer.”

Pointing to pay-as-you-go insurance as one of the key benefits, Calverley says the development has a positive impact on both insurers and customers.

“An insured vehicle is defined by how it is to be used, where it is kept and where it will be driven, which can all dramatically decrease premiums and risk,” he says.

Further, by having traceable data from the vehicle, an insurer can immediately determine where a vehicle is, where it has been, and any restrictions it has encountered in getting from point A to B.

“If a vehicle has been speeding along a roadway, perhaps ignored road manoeuvres, or has been driven into, or out of an area it wasn’t permitted to do so, the insurer is able to identify, and act accordingly,” says Calverley.

Marine insurance is another sector which can benefit from applying location technology as understanding where assets are, at any point in time, is critical.

“I’m currently working with a cargo underwriter on a supply chain tracking project with the aim of benefiting global marine insurers,” reveals Calverley. “We believe it will allow them to know in real-time where an insurable asset is at any given time, know who and what is currently in their lot, and help better coordinate activities on site and the organisation of containers.”

Property underwriters can also benefit from some of the data being collected, says Calverley.

“Working in partnership with a group in London, we’re creating an incredibly unique map which will provide portfolio managers with a real-time 3D version of each location, including the ability to map inside certain marked locations,” he says. “This is both powerful before and after a major event.”

Applications are also possible in both leisure and corporate travel insurance, as it allows providers to be better connected to the paying customer.

“By tracking their customer, some corporate travel insurers have the ability to know your exact positioning during any crisis – a very helpful tool not just for your employee but also for loved ones who are concerned for your safety,” says Calverley.