Reducing claims costs is an important objective for insurers that until recently has been mired in past-generation techniques. Fraudulent claims, disputes over the nature of accidents or losses, and a lack of verifiable data about incidents can complicate judgements and cloud settlements. A comprehensive and complete approach to claims cost management—beyond basic accident detection (which represents only about 10% of the proportionate benefit that can be truly achieved with telematics)—offers a valuable means for insurers to reduce a broad grouping of expenses in this area.
Zurich Insurance, a global insurer with a strong presence in the automotive sector, originally began their telematics journey by seeking methods to lower premium costs for their young driver book of business. Convinced by the benefits of telematics, Zurich sought IMS’s expertise to provide deeper cost savings to their organization – including achievable loss ratio savings through the use of telematics data in claims.