Big data was the big issue tackled in the third annual Global Insurance Symposium, when an insurance startup proposed remotely monitoring consumers in order to learn more about their driving habits.
The startup in question, Telematic, pitched its concept of using a smartphone app that informs insurers about the policyholder’s mobile usage habits while driving.
Telematic’s application only needs to be installed on a policyholder’s phone for it to work without the need for extra peripherals or gadgets, WHO-HD News reported. The application can track when a policyholder is texting or driving, and can even monitor how often a policyholder picks up and sets down the phone while on the road.
"Millennials are more willing to give up privacy, and they're the early adopters of usage-based insurance," Telematic co-founder and CEO Marti Ryan said. "So, again, if it's done correctly and strategically, as a convenience for the driver, I think we're going to see more people willing to give up their privacy for the convenience factor, and for insurance that is rated, probably at a lower rate, based on driving behavior - especially if you're a good driver."
Telematic underlined that the technology would be strictly opt-in, assuring that consumers will not be forced into being monitored without their consent. Ryan, however, said that those policyholders who can prove how safe they can drive while using the app could be rewarded with lower insurance premiums.
"It's money," Iowa insurance commissioner Nick Gerhart said. "That's why people give up privacy - to save money."
