Insurance

The Automotive Insurance industry is facing the challenge of adopting a pay-per-use insurance principle. Rising fuel prices and weak economic conditions do not encourage buying new cars, narrowing the possibilities for portfolio growth. Consequently, insurance companies are continuously going through marketing wars, in which prices are being lowered to attract and keep »good drivers« and profitable policyholders. In this hard and competitive market, the pay-per-use principle shows important strengths and brings many opportunities.

Market analysis of satellite-based applications for road users show that pay-per-use insurance should become normal practice in future, with 80% – 90% of drivers covered in this way by 2020 – 2025. 

Introduce new services and improve your market share with Telematics Insurance System
Telargo empowers you to win new customers by implementing the pay-per-use insurance, a new service based on the strategy of incentives and requirements, enabling you to change the unit of exposure (i.e., how premiums are calculated) from the vehicle-year to the vehicle-mile, vehicle-kilometer or vehicle-minute. Existing rating factors are incorporated so higher-risk motorists pay more per unit than lower-risk drivers.

Telargo’s Telematics Insurance System uses proven and reliable technology, ranging from GPS Automatic Vehicle Locating to Remote diagnostics, which enables the whole process to run cost-efficiently and also supports more revenues from additional services.

Remote diagnostics enables driver behavior analysis, gathering of engine performance and odometer data and allows you to quickly identify vehicles missing regular maintenance check-ups. The Telargo service considerably improves the safety and security aspects of vehicle insurance business, as remote vehicle locating, disabling and recovery is made easy and efficient. Also, extensive security protocols throughout the whole process guarantee your client's privacy will be respected.

Benefits of pay-per-use insurance include more personalized and fair premiums resulting in

• consumer savings,
• increased affordability and economic efficiency,
• reduced uninsured driving,
• promotion of good driving habits,
• reduced vehicle travel, congestion and emissions,
• reduction in road accidents.