According to estimates from mobile operators, the development of the global market for "connected cars" will be so rapid that it will grow from a value of 13 billion euros in 2012 to 39 billion euros in 2018.
In this sense, positive regulations from Europe, Russia, and Brazil will make telematics services (integration of technology and communication) a reality next year.
Telematics is the process of transmitting computerized information over long distances, which is done by applying GPS (satellite and position); GSM (telephony) and sensors in vehicles.
According to Octo's estimates, telematics applied to car insurance reduces the frequency of claims by policyholders by 14% compared to traditional policies. The average cost per claim decreases by €100. In the case of minor injuries, such as whiplash, the average cost reduction reaches €1,000, as noted by Jonathan Hewett, Chief Marketing Officer of Octo.
The eCall system could save 2,500 lives in Europe.
We won't have to wait long to drive the car of the future, as from October 1, 2015, all new passenger cars and vans produced in the European Union must be type-approved and then sold with an integrated eCall system.
This is an automatic emergency call system. Member states will have mobile phone networks and Public Safety Response Point (PSAP) emergency call centers adapted to the system.
The eCall system could save around 2,500 lives in Europe and reduce serious injuries by between 10% and 15% annually.
When operational, the eCall sensors, similar to airbag deployment, will recognize that an accident has occurred and automatically call 112, while simultaneously sending a Minimum Data Set (MSD) such as vehicle position and direction of travel, vehicle type and model, etc. The mobile phone network will prioritize the call and route it to the PSAP center.
In Spain, Octo Telematics has already equipped more than 100,000 cars with devices that function like the eCall system. This company is part of the eCall project's standardization working groups. More than 2 million vehicles across Europe are equipped with Octo's telematics devices, which have managed 480,000 accidents.
Thanks to Big Data, Octo Telematics receives, stores, and processes more than 72,000 geographic data points per minute. “We handle the entire process: from the design and implementation of the devices, which act as 'black boxes,' to claims management, including the storage and analysis of driving data. And all services are provided according to ISO 9001 and ISO 27001 quality standards for security and information protection,” explains the company's Managing Director for Spain and Portugal.
The telematics shift allows for the personalization of insurance policies.
The relationship between company and client is much more direct and transparent with telematics insurance. Devices integrated into vehicles allow for defining the usage profile of the actual driver, not the policyholder, achieving two things:
- The insurer can know where, how much, and how the vehicle is used, so they can assess the real risk and adjust the policy or personalize the premium (pay-per-use, pay-per-km, prepaid, green policies, etc.).
- That the driver has access to technology that allows him to travel more safely and, in addition, can save money compared to his current situation.
