Imagine a world with premium pricing that rewards drivers for safe driving (i.e. usage-based premium pricing), the elimination of manual processes, and driver safety based underwriting capabilities. To enable such a reality for commercial auto insurers, data is king. More specifically telematics devices, pulling real-time data from vehicles, are essential to provide this critical infrastructure. However, that data is not easily accessible…. Unless you’re using… Axle, a universal API connecting data across telematics devices, allowing insurers to tap into real-time, granular vehicle data.
In this blog post, we dive deep into the challenges faced in the insurance space and how Axle is poised to unleash new data and practices to support commercial auto insurers.
Commercial auto insurers face many headwinds. Historically, this has been an area that is difficult to tame with a combined ratio (sum of underwriting loss ratio and expense ratio) above 100% in past decades.
While progress has been made to bring this ratio below 100% in 2021-22, the industry faces a challenging climate amid: driver shortages, worsening crash severity, rising repair costs, and more. This is certainly a testing space to say the least.
In light of all the obstacles insurers must overcome, we can focus our lens on the heart of the issue: inadequate data and manual processes. These are areas ripe for enhancement. Let's dive into some examples:
Here's where Axle makes its difference, armed with an array of telematics and ELD integrations. This translates to a wealth of data, including vehicle location history, safety events, and driver behavior, all accessible via APIs. This provides a treasure trove of information for insurance companies to tap into, while still ensuring the privacy of the insured.
Let's explore how Axle addresses these pressing issues:
In the ever-evolving landscape of commercial auto insurance, Axle stands as a foundational support. Armed with real-time telematics data, it can enhance how insurers approach risk assessment, FNOL, claims adjustment, and premium pricing. The times are changing, and the future of insurance is bright, data-driven, and undeniably efficient. As we navigate the tides of technological advancement, Axle is the ultimate partner – riding alongside insurers towards a horizon brimming with possibilities.