Figure 14: Combined ratio improvement from a telematics programme
Source: IoT Insurance Observatory
Categories
ATraditional bottom line
BTelematics costs
CRisk prevention
DEnhanced claim management
EChurn reduction
FIncreased efficiency
GPartners’ contributions
HStreet value of telematics services
IValue sharing
JBottom line with telematics
Comments
1Best practices showed up to 3 percentage points on the loss ratio at portfolio level through a structured behavioural change programme.
2Best practices showed:
Up to 20% better retention than the market average (0.5–1 percentage points on the combined ratio).
Extremely lower churn in the clients who received rewards.
3Rewards to the customer
4Street value of the IoT services
5Intermediary renumeration