Page 16 - Insurance Times February 2023

The future of Auto

insurance is usage

and behaviour

Sanjay Datta
based Chief -Underwriting
Reinsurance & Claims
Actuarial, ICICI Lombard GIC

Collision warning systems can detect collisions, and if a significant incident occurs, an SMS will
be sent to the emergency contacts listed on the insurance company's helpline alerting them of
the position of the car and the number of persons inside at the moment of the collision.

ndia's insurance regulation (IRDAI) has allowed One such innovative solution is the introduction of two
I general insurers to offer technology-enabled add-on telematics add-ons, Pay-As-You-Use (PAYU) and Pay-How-You-
Use, which uses Telematics and onboard diagnostics (OBD)
plans for auto insurance policies based on the owners'
usage and driving history. Here's what it means for to track automobiles, trucks, machinery, and other assets
you. (PHYU).

Our social and work habits are just a fraction of the aspects What is Telematics?
of our daily lives that have been impacted by the pandemic's Telematics is concerned with the long-distance transmission
two protracted years. And because of these changes, of digital information. The term "telematics" is now
everything else in our lives-from where we work to how we commonly used in the automotive industry, particularly in
commute-has changed, even the way we drive. regard to monitoring and tracking, which in this case will
be monitoring your odometer and GPS data.
While COVID-19 has severely disrupted several industries,
they have been looking for ways to adapt to the "new way". Likewise, telematics devices and solutions have evolved in
tandem with rapid technology breakthroughs. For example,
The same is true for insurers. The relentless digitisation push
has led the insurance industry to the brink of a paradigm dashboard cameras can help insurers analyse the
legitimacy of a claim and provide information about the
shift.
collision. Collision warning systems can detect collisions,
As a result of the outbreak, several people have changed and if a significant incident occurs, an SMS will be sent to
their driving habits. To stay up with shifting client the emergency contacts listed on the insurance
expectations, insurance players have been playing catch-up company's helpline alerting them of the position of the car
in response to technology's disruption of the insurance and the number of persons inside at the moment of the
market. collision.

The Insurance Times January 2023 15