A worldwide leader in advisory services and an international telematics company have partnered together to accelerate the introduction of telematics into Australia.
Ernst and Young and Baseline Telematics have come to a non-exclusive agreement to enter the telematics market using either customers smartphones or small plug-in devices.
Baseline Telematics President and CEO Paul-André Savoie says telematics will revolutionise car insurance.
“Pay-as-you-drive insurance is likely the most important thing to happen to car insurance since the invention of the car,” he says.
“Although usage-based insurance policies only currently account for less than one percent of the global automobile insurance market, this figure is set to increase dramatically in the coming years due to an impending need for insurers to design differentiated products and build stronger, more engaging and meaningful relationships with their customers, all while improving underwriting and rating methodologies in a highly competitive, and commoditised market.”
Baseline technology is already in use in Canada, Latin America, Norway and the US and EY’s Insurance Strategy and Customer Advisory Lead, Walter Poetscher, says it is only a matter of months before the technology becomes available to consumers in Australia.
“EY is working with Baseline to provide an innovative and practical approach to usage-based insurance that will help Australian and New Zealand insurers take the idea from initial concept right through to market launch in a matter of months,” Poetscher says.
“Our recent Global Consumer Insurance survey found that Australian consumers wanted more frequent, meaningful and personalised communications from their insurers, with almost half indicating they want to be engaged by their insurer more than once a year, yet only half of those currently receiving this level of communication.
“Given the real-time application and regular contact points of the usage-based model, we think there will be a real appetite for this type of offering in the market.”