HIGHLIGHTS
The highly commoditized nature of the insurance business has made it massively competitive. The prevailing price elasticity has increased customer churn.
To provide a more wholesome experience to their customers and ensure service and product differentiation, auto insurers are exploring data-driven engagement programs.
Using 5G and internet of behavior (IoB), the TCS insurance telematics solution helps auto insurers derive actionable insights to offer more personalized products.
In this article
Overview
In the highly commoditized auto insurance industry, it is natural for consumers to hop between providers and go price-shopping.
Amid competition and the inherent risks in the insurance industry, this prevalent price elasticity – where insurers have the option of adjusting product pricing based on demand to win their loyalty – either hampers profitability or worsens customer churn. Add to this, the transactional nature of today’s insurance ecosystem, and the result is subpar customer engagement practices.
This is driving the auto insurance companies to embrace continuous data-driven engagement programs that can benefit across multiple fronts. In line with this, TCS has developed the insurance telematics solution that leverages data to mitigate risk, increase profitability, and open new lines of revenue. The solution helps auto insurance providers to capitalize on the power of 5G and internet of behavior (IoB) to push newer and more personalized products into the market, while reducing risks.
The opportunity
Traditional insurance companies face massive competition given the emergence of digital-native players.
This has compelled them to move away from transactional business models and create more wholesome experiences and customer-centric journeys. This reduces customer churn and helps create product and service differentiation in this highly commoditized market. This will ultimately enable companies to transform their engagement and explore new avenues of innovation.
The TCS insurance telematics solution empowers insurers with telematics and connected car technologies to cater to the ever-evolving consumer demands. The solution covers the end-to-end aspects of the telematics value chain, from data collection, data enrichment, and big data analytics to business solution designing. With the help of contextual risk behavior data collected from smartphone apps and connected vehicles – that includes acceleration, braking, cornering, speeding, distracted driving, and more – insurers derive actionable insights. In addition to underwriting the best-fit low-risk policy for a customer through these insights, the TCS solution also helps insurers tap into the manufacturers’ ecosystem for sales.
With the TCS insurance telematics solution, companies can design unique programs and adopt new-age business models, such as unified mobility programs, where the customer’s risk is monitored across different modes of transport. Accordingly, insurers can reward their patrons for good behavior, which goes a long way in customer retention.
Solution
TCS’ insurance telematics solution has numerous features that help insurers retain customers.
Some of its salient features are:
Easy integration: The cloud-ready solution integrates with existing policy admin systems and is customized to the specific needs of a business, thereby reducing time-to-market and development costs.
Proprietary business program design: Insurers can design their own business programs around telematics, using their own data.
Risk behavior modification: The real-time behavior data collection based on IoB and other connected car technologies, enables insurers to continuously access data and modify premiums for customers.
Data personalization: The information derived from user and vehicle data helps insurers with opportunities to upsell and cross-sell and offer more personalized policies.
Extended support: The solution is underpinned by business operations support, including contact center assistance for end users, which eliminates the need for additional investments on resources.
Figure 1: TCS insurance telematics solution
Business benefits
TCS’ solution transforms customer experience and improves an insurer’s brand value.
Here’s how the solution benefits insurers:
10% improvement in new business
20% reduction in claims for high-risk segments
14% average premium savings per vehicle
Retained and acquired new customers thanks to a transformative customer engagement involving teenage drivers
Enhanced brand awareness among consumers through app alerts
The TCS advantage
TCS is a global leader in building innovative solutions for progressive businesses.
Here are some of the advantages that insurers can gain by partnering with TCS:
Proven expertise: TCS leverages its rich industry experience, contextual knowledge, and pioneering research and innovation to drive measurable success. Organizations stand to benefit from TCS’ global experience and exemplary record in nurturing fruitful relationships with a wide customer base.
Strong domain knowledge: Customers benefit from TCS’ unparalleled knowledge and exemplary execution track record driven by expertise in the automobile industry, data, and analytics.
Strategic partnerships: TCS has developed global partnerships in areas like location intelligence, advanced scoring, and connected cars. These alliances allow TCS’ customers to identify and realize value faster by translating experience to execution.
