SSP, a leading global provider of general insurance technology solutions, today announced it has enhanced its core insurance systems to help insurers introduce telematics products faster and at lower cost than would otherwise be possible using their existing legacy systems.
The development provides insurers with extensive capability to launch usage-based offerings, enabling them to overcome legacy system issues and inflexible existing processes, which have been significant barriers to the wider availability of telematics-based products. Rather than having to spend time and money adapting legacy systems, this pivotal development empowers insurers with the systems capability to launch telematics products swiftly and cost-effectively.
The new capability was used by QBE, Australia's largest international general insurance and reinsurance group and NIA Underwriting Agency to launch Australia's first usage-based private motor insurance product, called Insurance Box, last week.
SSP's core insurance systems, SSP Pure Insurance and SSP Select Insurance now offer easy integration of third-party telematics data and solutions. The configurable software allows real-time data integration, with telematics solutions providers collecting data via fixed black boxes, smartphone apps or an on-board diagnostic device.
The driving behaviour data generated is transformed into a driving score which is transmitted to SSP's systems, allowing insurance companies to calculate individual premiums at any point in the life of the policy.
Kevin Gaut, Chief Technology Officer of SSP's insurer division, said: "This is another demonstration of our commitment to continuously enhance our solutions to provide insurers and brokers with the tools they need to compete effectively. In particular, we want to help our clients maximise the growing demand for telematics policies - a market that is set to grow rapidly over the next few years.
"This capability helps our clients build, manage and support integration with multiple telematics solutions providers, creating the flexibility they need to develop new pricing models and differentiate their offerings in what is becoming an increasingly competitive market."
Craig Beattiee, Senior Analyst in research and consulting firm Celent's insurance practice, said: "Insurers no longer need to rely on a few factors such as age, gender and location to determine pricing. Telematics enable insurers to price on the policyholder's individual behaviour, to interact with customers in a way that's never previously been possible and, as a result, to strengthen their brand.
"There is no doubt that telematics-based insurance is here to stay and will have a significant impact on the motor insurance industry globally."