How telematics is helping to reduce insurance fraud

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The Queen's Speech promised a crackdown on fraudulent insurance claims, so how can telematics help?

 We're living in an amazing time, like it or loath it, technology is shaping the way we do things. The government's recent pledge to ban the sale of all petrol and diesel cars from 2040 only serves to further highlight and impress upon us all, the need for change. With increased efforts to tackle air pollution well under way, a new generation of vehicles, which are connected and increasingly autonomous, is emerging.

SMMT (Society of Motor Manufacturers and Traders) Expenditure on business research and development in the automotive sector in 2016 totalled approximately £2.75 billion, an increase of 10% compared to 2015. With improvements in vehicle safety and efficiency impacting on how our society functions, the automotive world is changing like never before.

The development of technology fuels our appetite for consumption with many of us already taking advantage of gadgets such as dash cams and driver apps, not to mention the leaps made by motor manufacturers into the electronic vehicle and self driving space. But it's the increasing use of telematics that is providing an unexpected benefit, to insurers and drivers alike.

According to a recent report by Aviva, three quarters of motorists believe that telematics devices can make our roads safer, but with that in mind, there's one aspect that hasn't been given the column inches it deserves. As more vehicles are installed with telematics 'black boxes', the assisted identification of insurance fraud is proving to be a real success.

Last month the Association of British Insurers (ABI) reported that insurers repudiate 2,400 fraudulent insurance claims totalling £25 million, every week! The increasing number of drivers electing to have a telematics device installed in their car, allows an insurer to monitor location, speed, acceleration, cornering, braking and importantly G-force (to name but a few), thus arming the insurer with additional and relevant information in the form of supportive evidence at the point of claim.

Using the data provided by telematics equipped vehicles, insurers are able to gain greater insight when a claim materialises, giving them the opportunity to more accurately assess whether the facts presented to them are true. With incident data being readily available to claims and fraud investigation teams, claim processing times are reduced, thereby facilitating greater levels of customer satisfaction, in addition to reduced claims spend.  

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