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Auto Insurers Missing Out on Major Savings and New Revenue From Telematics Technology Advances

Business Wire Car Insurance
Published: Thursday, May 08, 2008 

Technology-enabled programs could save auto insurers $20 billion in annual claims payouts, or 17 percent of personal lines auto insurance losses each year, while making driving safer, according to Diamond Management & Technology Consultants, Inc. (NASDAQ:DTPI). Furthermore, almost eight of 10 U.S. households are open to some kind of risk monitoring/reduction device that would collect information about their driving habits, new Diamond research reveals.Despite this promise, automotive insurance companies so far are focusing only on telematics technology to promote safer teen driving instead of leveraging it to help all drivers--which would produce bigger benefits for insurers, notes Paul Blase, co-managing partner of Diamond's insurance industry practice.....

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