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Telematics in Automobile Insurance

Author

Listed:
  • Barbara Cieślik

    (Szkoła Główna Handlowa w Warszawie)

Abstract

It seems that the use of telematics in cars and other vehicles is changing the automobile insurance industry rather rapidly. It creates new possibilities but also new threats. The general idea is to link the premium with the use of the car – the distance driven plus the style of driving and the general name for insurance based on this data is Usage Based Insurance (UBI). There is no common standard either in data used in this kind of insurance or in the techniques used for collecting and sending them. Nowadays so called soft telematics – applications on mobile devices – is gaining the market, which has previously been dominated by plug-in devices, but it is forecast that in the long term embedded solutions made by car manufacturers will defeat other solutions.

Suggested Citation

  • Barbara Cieślik, 2017. "Telematics in Automobile Insurance," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 45, pages 79-92.
    • Handle: RePEc:sgh:annals:i:45:y:2017:p:79-92
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