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Insurers cars promise discounts if you drive in Big Brother


This article was translated by an automatic translation system, and was therefore not reviewed by people.



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Insurance companies around the world are promising lower rates for the automotive coverage.
Insurance companies around the world are promising lower rates for the automotive coverage. The trick is that they want to install the equivalent of a black airplane box to monitor how and where you drive.
Smartphone applications and devices that record driving data and the vehicle must infiltrate the branch of automotive insurance at a rapid pace, driven by discounts of up to 30 percent. The Oliver Wyman consulting provides that the use of data by automotive insurance to set prices grow 40 percent per year and will become a R$ 3.6 billion market by 2020.
For insurers, the technology will provide refined information about the management style of an individual, which includes driving at high speed to avoid a red light, in order to enhance returns in this competitive segment. For drivers, monitoring Big Brother offers lower rates and faster response in the event of an accident, including medical assistance and repairs. In any case, the distance in relation to the standard practice of classifying customers by age and driving record may be inevitable.
Fight for participation
"Soon it will default in the market," said Domenico Savarese, who directs the efforts of vehicle information Zurich Insurance Group AG, a company that offers automotive coverage to about 15 million drivers in 30 countries. Whereas automobiles are increasingly equipped to gather and transmit data, "the auto insurance, by definition, have to change."
The automotive coverage in Europe generates about 130 billion euros ($ 160 billion) premium income of a year, the largest segment after the life insurance. As the automotive insurance is in large part standardized, insurers fight for market share with lower prices.
Vehicle manufacturers such as Volkswagen AG and BMW are building more connected cars to add features that alert other vehicles about traffic congestion and, ultimately, to facilitate the autonomous direction. Regulators are also reinforcing the spread of technology. The European Union legislation requires that new cars have a system that automatically notifies the emergency services after a serious accident, conveying basic information about the location of the accident, even if the driver is unconscious.
Off the Axa
However, vehicle manufacturers did not make the information readily available because they attempt to protect their territory. This caused insurers to depart the vehicle manufacturers with devices that gather this information independently.
"Whereas the vehicle manufacturers retain the data for you, insurers are taking a shortcut," said Jürgen Reiner, a partner at Oliver Wyman. "This implies that insurers assume that part of the relationship with the customer at the expense of vehicle manufacturers."
In Ireland, Axa SA is promoting his Drivesave program with discounts up to 20 percent for drivers 17-24 years. The service uses a smartphone application to record data such as acceleration, speed, distance and stopping force. Another 10 percent per year can be saved if customers continue driving safely.
new standard
The Allianz SE, Europe's largest insurer, is following a similar path and open a center at its headquarters in Munich next year to expand its four driver's monitoring product to 10 countries.
For decades commercial airlines are equipped with voice and data recorders that record flight information and can help determine the cause of an accident. Although there are privacy concerns in the expansion of this resource for the cars, the attractiveness of lower premiums and better security are a powerful incentive, especially among young drivers, who are accustomed to permanent connectivity.
Although the auto insurance based on the user accounts for less than 5 percent of the market, the share will increase to 26 percent in the US and 38 percent in the UK by 2020, according to a November study by Roland Berger Strategy Consultants.
"We believe it will eventually be unstoppable," said Jürgen Thiele, a partner at Roland Berger Strategy Consultants. "This is an industry standard, even if some of the old rates remain".


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