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Will Insurers Be Connected to the Connected Car?

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22 November 2016
Donald Light

Abstract

Celent has released a new report titled Will Insurers Be Connected to the Connected Car? The report was written by Donald Light, a research director in Celent’s Insurance practice.

This report looks at the rapidly evolving connected car ecosystem and describes the implications for motor vehicle insurers.

Cars are being connected to infotainment providers, as well as auto manufacturers, auto dealers, repair shops … and insurers. The ecosystem participants are providing a broad range of information and products to broaden and deepen their relationships with vehicle owners and passengers. Auto insurers must go beyond telematics and develop alliances with vehicle manufacturers, dealers, fleet management system providers, and others.

“At the moment, value propositions are centered on telematics offerings which reduce premiums for good drivers, and providing a few closely related offerings,” commented Light. “This is a good strategy for insurers today, but will leave them too vulnerable in the next few years.”

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