Numerex: Telematics is “an emerging and vital trend in the insurance market”

Numerex: Telematics is “an emerging and vital trend in the insurance market”

Rick Burtner’s expertise and experience spans sectors as diverse as manufacturing, distribution, construction, healthcare, and telecoms. As senior vice president and general manager of the Location-Based Services Group at Numerex, he oversees a wide range of mobility-centered business initiatives for U.S. government departments and agencies as well as commercial and industrial markets in the United States and abroad.

What does your company do?

Since 1994, Numerex Corp. (NASDAQ: NMRX) has been the single source machine-to-machine (M2M) product and service provider to some of the world’s largest organizations, delivering the foundational components of device, network, and application used by customers in the development of their M2M solutions. Customers typically subscribe to Numerex network and application services delivered through its hosted platforms. The company’s offerings and expertise enable customers to efficiently build reliable and secure solutions to monitor and manage assets remotely whenever and wherever needed, while simplifying and speeding up development and deployment.

Numerex DNA™ offerings include hardware Devices, Network services, and software Applications delivered through its Numerex FAST™ (Foundation Application Software Technology) platform. Numerex is the first M2M service provider in North America to carry the ISO 27001 information security certification. Machines Trust Us® represents the company’s focus on M2M data security, service reliability, and round-the-clock support of its customers’ M2M solutions.

What is your role in the insurance telematics market?

Through our Location-Based Services Group, Numerex offers end-to-end solutions to the auto insurance industry for tracking driver performance: supplying cost-effective devices; customized applications for information gathering and presentation; and integration with our customers systems for administration and scaling of the program on a national footprint. While the industry has not had real-time driver performance information for setting customer premiums in the past, we offer this in a complete and turnkey solution that provides insurers with useful and insightful information on an open-sourced application platform.

Numerex also provides the insurance industry with mobile tracking and recovery solutions for customers seeking to protect their high-value assets and minimize losses. These assets typically include equipment, vehicles, containers, and cargo for industries such as oil and gas services, among other utilities, transportation, construction, government and military services, maritime, and public and emergency services organizations.

How important is telematics throughout the insurance market space?

We see telematics as an emerging and vital trend in the coming years in the insurance market. As stated in a recent ABI Research report on consumer telematics, while PAYD insurance is growing in popularity and is seen by consumers as a way to save money on insurance, privacy concerns are a major growth obstacle that needs to be considered. Educating this market, which has been a common trend across many M2M markets, will be the catalyst for growth in this industry.

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

In the consumer insurance market, the trend towards telematics information will provide more accurate, timely, and relevant information regarding driver behavior and driver distractions. Additionally, consumers and commercial fleet drivers can improve the environment by adopting ‘green’ driving habits, and improve maintenance on vehicles by tracking key performance indicators on their vehicles. Ultimately, these trends result in safer drivers and highways, rewarding safe driving behavior with lower premiums and charging additional premium costs for unsafe driving behavior.

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

We believe every major insurance company will be utilizing telematics and incorporating it into their business practices over the coming years. However, simplifying the supplier telematics ecosystem for these insurance companies will determine how quickly this industry grows.

For more on insurance telematics, see ‘Can Telematics Reinvent Auto Insurance?’

To find out more about our Insurance Telematics conference taking place on the 13th and 14th of September at the Double Tree Hilton, Magnificient Mile, Chicago, IL, USA. Click here

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