As telematics becomes increasingly important to the insurance industry in Canada, the need for a telematics standard is crucial for the broker channel. The CSIO telematics standard provides a uniform way of transmitting telematics data between multiple business partners, enabling data quality and consistency across the industry.
What’s New in Telematics?
The CSIO Telematics Standard
CSIO Webinar – Introduction to the Telematics Standard
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What is Telematics?
As its name suggests, telematics combines telecommunications technology and informatics. When installed, these devices can gather, store and send information from vehicles to an insurance company. The insurance company then assesses the risk of that driver having an accident and charges insurance premiums accordingly.
CSIO Telematics Standard
An IBM white paper from 2012 cited a study that found “92% of drivers think their car insurance premiums should largely be based on the way they drive.”
Telematics is – so far – a voluntary option, but black boxes are becoming a standard feature on new automobile models. CSIO recognizes this emerging trend and is working with the Canadian P&C marketplace to deliver data standards for telematics.
CSIO released two telematics messages in January 2014, including VehicleTelematicsNotify. This message will:
Allow telematics data providers to deliver data to data consumers (typically insurance carriers). These messages provide a standard XML method to package and deliver vehicle telematics data in multiple formats (e.g., a summary view vs. a detailed view).
Provide information needed to implement and deploy telematics data delivery in a standard way. This will enable data quality and consistency, allowing single implementations to connect with multiple business partners.
- Allow for the automation of data integration, reducing manually introduced errors and improving data consistency and workflow auditability.
A standard telematics data format delivered to insurers will improve analytic consistency and reduce the need to support multiple data interfaces.
Telematics (and a CSIO telematics data standard) will allow customers to:
- Enjoy cost savings for being a responsible driver.
- Communicate important driving information to multiple insurers quickly and consistently, broadening their ability to choose rather than restricting it.
- Receive feedback on their driving behavior either directly to an electronic device or through their insurance broker.
- Be smarter, safer, greener and more productive on the road.
Telematics (and a CSIO telematics data standard) will allow brokers to:
- Capture more business from market segments that stand to gain the most from telematics, e.g., younger drivers.
- Improve customer retention, as more competitive premiums and discounts can be offered to good drivers.
Telematics (and a CSIO telematics data standard) will allow insurers to:
- Tailor discount prices to certain customer segments, depending on the customer’s driving behavior.
- Move beyond premium pricing and expand their telematics investment to other parts of the business, e.g., to validate/support claim requests.
- Attract new customers who have used a telematics device elsewhere with an accurate quote based on their driving patterns