Telematics Technology in Motor Insurance for Effective Risk Management

Abstract

Financial Technology (FinTech) is a latest innovative and cutting-edge technology to offer various digitalized financial services to its customers and assumes greater significance in the global competitive environment. As part of FinTech, insurance companies are using InsurTech innovations for providing cost saving efficient services to its clients in an urge to avoid disruption within the insurance industry. One such innovation is 'Telematics', which is being used across motor insurance segment in non-life insurance industry. The present study makes a modest attempt to understand the need and relevance of telematics in motor insurance amidst rising incurred claims ratios in motor insurance. Besides, it would discuss the mechanism of telematics and concludes with the challenges faced for its successful implementation in India.