Leveraging Insurance Telematics

The industry of insurance is currently primed for technological disruption. One area of insurance that will benefit greatly from digitization is automotive insurance, especially in how claims management and ERP systems can be integrated with automated data collection services. Insurance telematics is the area of insurance technology concerned with harvesting IoT insurance data from policyholders that can then be shared with a company’s claims management system to determine premiums and rates. Exactly how disruptive (and ultimately successful) this new technology will be will depend on how quickly insurance innovators buy into telematics. Let’s explore insurance telematics a little bit further and how Mendix, a leading low-code platform as a service, can provide solutions to accelerate adoption.

Understanding Telematics

It takes more than one system to potentially monitor a vehicle, let alone hundreds of them registered in a given area under a single provider. Furthermore, allowing monitoring systems to share data across cloud computing platforms makes the data retrieved from vehicles much more useful – and exciting – for digital insurance providers really looking to take advantage of digital transformation trends. Getting all of these systems to talk to one another is still clearly a challenge, but a platform like Mendix can simplify the process of building smart applications which utilize this IoT data.

Telematics provides some crucial solutions to help propel this digital transformation for insurers. Car insurance companies can use car insurance telematics to track how often and how well drivers drive, and then transmit that data over long distances. The insurance provider Metromile, for example, is offering a usage based, pay-by-the-mile car insurance in the US, while Progressive calculates individual premiums based on monthly data provided by opted-in telematics devices.

ERP Systems and Telematics

Indeed, with each passing day, insurance telematics plays a bigger role in the future of insurance by handling more and more of the acquisition and transmission of individual policyholder’s data to insurance companies. Different technology, however, takes over once the data reaches the companies’ cloud computing platforms. It is PaaS providers like Mendix that handle the acceptance of the data and then securely transfer the data to ERP systems, or enterprise resource planning systems.

ERP systems are integral to many of the processes in digital insurance policies, from insurance contract accounting to insurance payments calculations. The data originating from telematics devices can also be integrated into other back-office systems to improve other departments’ ERP processes, such as customer service and human resources.

In a nutshell, by gathering GPS location and vehicle diagnostics data from telematics devices, digital insurers can streamline data acquisition and securely route measurements via mobile app platform providers like Mendix to internal ERP systems.