Adviser: Motor Fleets, Telematics, and New Data Challenges
One of the emerging challenges surrounding telematics systems relates to the data they provide: what data is available, how can it be harnessed, who “owns” it, and how can it be disclosed/used?
Effective use of a system can identify how safely drivers operate and how specific driver behaviours can lead to reductions in collisions and associated costs. Systems can also support reductions in fuel consumption and wear and tear and improvements in fleet security.
From the point of view of insurance underwriting, historic data has traditionally been used by insurers to model risks, but we are now seeing insurers take a real interest in what businesses do with the telematics output. They will only truly recognise the value of a telematics system where policyholders demonstrate they are using it efficiently to reduce risk.
Privacy issues can be a concern; new EU-wide legislation obliges manufacturers to install telematics in new cars and light vans, which will automatically summon the emergency services when a serious accident takes place. E-Call will collect driving behaviour data relevant to both manufacturers and insurers.
With increasingly connected cars and fleets, who “owns” the data? Who can call on the data and, if collecting data, what duty do you have to use and act upon it? Our Adviser includes an opinion from BLM, a risk and insurance law specialist.
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