EMB: Telematics can deliver an improved insurance product

EMB: Telematics can deliver an improved insurance product

Robin Harbage, c-counsel business consultant with EMB, has more than 28 years of experience in the property and casualty insurance industry. Before joining EMB, Harbage served for over 20 years at Progressive Insurance in various roles. He has extensive experience in product development, having created and managed Progressive’s direct auto R&D group responsible for segmenting the personal auto market and optimizing the consumer experience for phone and on-line shopping.

What does your company do?

EMB is the world’s leading independent actuarial consulting firm dedicated to the property and casualty (P&C) industry. EMB has provided consultancy and software to 28 of the world’s largest 30 P&C insurers.

What is your role and experience in the insurance telematics market?

EMB is in a unique position due to the experience of senior consultants who have led the development of telematics products at their former employers, Progressive and Norwich Union. EMB has now developed a team of telematics experts who are assisting numerous insurers globally with their telematics product development.

How important is the role of telematics currently throughout the insurance market?

The growing acceptance of telematics as a significant wave of the future for delivering an improved insurance product with greater segmentation, unique services, and lower loss costs is now leading most major insurers to seriously explore their options. Most of the major insurers in North America and Europe will likely have full-scale products in the next two to three years.

Which trends will impact the industry the most in the coming years and why?

The ability of the early adopters to attract and retain the better risks will significantly impact the rest of the industry as adverse selection drives up competitors’ average loss costs.

Where do you see the insurance telematics Industry heading in the next five years?

Five years is probably too long to project. Rapid adoption of the current technology and product rollout by major insurers will occur much more quickly than that. Once this occurs, smaller insurers will begin to look for less expensive alternatives to enter telematics and quickly avoid the competitive disadvantages of severe adverse selection. This demand will put accelerating pressure on the telematics industry to quickly respond with less expensive and more turnkey solutions.

For more on the insurance telematics market, see ‘Can telematics reinvent auto insurance?’.

Harbage is speaking at Telematics Update's 1st annual Insurance Telematics USA 2010 Conference & Exhibition. Click here for more information!

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