Why is connected insurance vital for EV fleets?
During hard times comes innovation. While sales in the auto sector dropped around 20% during the pandemic, electric vehicles (EVs) came forward, along with innovations, to take the fleet industry forward. Europe is ready to have 40 million passenger EVs on roads by 2030, boosted by connected insurance solutions. But what exactly is connected insurance?
Simon Dicks, Insurance Channel Manager EMEA at Lytx, explains:
“Connected insurance is when data from a technology solution, such as a telematics device, is directly connected to an insurer platform. This will often involve taking information about what’s happened in the fleet, such as excessive swerving, speeding, and braking and overlaying it with other data points about the weather or the type of road. Insurers then use this to inform underwriting decisions and price policies for that fleet.”
How does it work?
According to Dicks, connected insurance is most powerful when:
● It tells insurers “why” an incident happened.
● Allows insurers to analyse driver behaviour.
When applied with video telematics or artificial intelligence (AI), connected insurance provides context around why an incident happened, including the event leading to it, says Dicks. “Insurers build an accurate picture of fleet risk only when this context is provided.”
How should it be applied?
Dicks explains: “To apply connected insurance to a fleet, insurers must create a user interface (UI). This is a platform where multiple data streams can be aggregated and made sense of to understand what ‘good’ and ‘bad’ looks like – and which allows them to assess risk accurately.”
Picture from Shutterstock