Each Additional Month of Engagement with Telematics Apps May Reduce Speeding Time per Trip up to 15%

Telematics technology has enabled insurers to learn, almost in real-time, about the driving behavior of their users. But as the data is collected, they are also realizing the power of telematics to effectively change driving behavior.

Are telematics users more prone to less risky driving? Can the use of telematics apps really have an effect on their driving?

A clear “yes” is the answer to both questions. Our latest research, based on several years of data across several countries, provides strong indications confirming these answers.

Our analysts investigated how engagement (in terms of a number of months users used the apps) and the number of trips recorded on average per month affect risky driving indicators: over-speeding instances per trip and risky maneuvers (ABC: acceleration, braking, cornering).

The data indicates that every additional month of using the app significantly decreased the average trip speeding time between 5 and 15%. Moreover, the number of risky ABC maneuvers per trip declined between 15 to 20% with every additional month of app usage. User engagement expressed as the number of trips recorded per month has a strong and significant effect on the improvement of driving behavior.

However, a certain caution in the interpretation of such results is also necessary. Numbers may vary not only due to differences in local conditions or driving culture but also based on the type of incentive and reward programs offered by the insurance companies.

A well-trimmed incentive program can lead to dramatic changes in engagement, driving behavior, both leading to reduced claims. Telematics-based UBI programs need to be trimmed to motivate long-term and regular use of the apps, but insurers should not be afraid to combine them with short-term campaigns as well.  As we can observe, the key to reducing claim risk seems to be in user engagement.  

Did you know that users of Amodo app have a 60% lower probability to be involved in an accident with fatal injuries?

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