Telematics have weaved their way into mainstream auto insurance underwriting. The little black box installed in your vehicle send information about your driving habits, how fast you go, how far you go, etc. For years, an auto insurance premium has been based on what you tell your insurance agent, coupled with what other information (driving record, accidents, etc.) is available. But through telematics, your actions speak louder than your words.

In an interview with Insurance Business Magazine (, Ron Kozlowski from Towers Watson, a leading risk management strategy firm (, said “with the use of big data and usage-based insurance, actuaries are looking more at causal relationships rather than just corollaries. Now, you’re not getting this rate because you’re married or because you’re 28, it’s based on the way you drive—and there’s been talk about whether or not it could be applied towards small commercial risks or towards homeowners products.”

Carriers have made great strides in perfecting devices that help them to assess risk and aid in the underwriting and claims processes. Now it seems that today’s connected homes are another means to provide insurance companies with additional information to compile risk analysis and loss prevention data.

For the rest of the story, visit BIG Magazine (

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