TOWARDS DIGITALIZATION IN INSURANCE MARKET: TELEMATIC INSURANCE

Year 2020, Volume: 6 Issue: 2, 1 - 10, 31.12.2020

Muharrem Umut

https://doi.org/10.22531/muglajsci.702898

Abstract

A new type of insurance where information technology is widely used has emerged in the field of digital insurance: telematics insurance. By receiving the real-time data of the insured with the help of telematics devices containing car-connected technology, telematics insurance plays an important role in determining the risk of the insured and calculating the right premium accordingly. The insurance offers a more accurate and fair pricing opportunity based on usage behavior (Usaged-Based Insurance, UBI) data, such as driving distance, driving area, acceleration and braking conditions, what time of day the vehicle is used, as well as personal information. Telematics insurance is an important factor in distinguishing risky and non-risky drivers, reducing the insurance premiums of less risky drivers, changing the driver habits and directing people to more careful driving, thereby reducing the number of accidents that cause material and physical damage.For the telematic insurance to be implemented in our country, it is recommended that the ipplementation be carried out through the Insurance Information and Monitoring Center, where all insurance data is kept in one center and made available to the insurance market, rather than establishing insurance companies’ own infrastructure.

Keywords

Information technology, Digital insurance, Telematic insurance, Driver behaviors, Usaged-based insurance

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