Available only to insurers working with the Dublin-based reinsurer on a quota-share basis, the telematics offering can be adopted either on a full-service basis, allowing carriers to implement telematics technology for the first time, or to enhance and complement existing telematics technology.
The technology has been developed and refined by parent company Unipol Group for almost 20 years in Italy. The company currently insures 4.5 million vehicles using its telematics technology, giving it access to tools and artificial intelligence (AI) based on one of the largest telematics datasets in the world. Its offering has been constantly refined and improved using this data.
In Italy, its use of telematics has achieved some astounding results. For young drivers, for example, the expected loss improves by some 23 percent when the full range of telematics services is used. Unipol Group has evidence that the claims frequency can reduce by up to 10 percent and the average cost of a claim can reduce by up to 14 percent. In addition the retention rate for these policyholders shows a substantial improvement.
Services
As part of the offering, UnipolRe can provide black boxes (which can be installed either professionally or by the end user); a telematic service provider, which collects and stores all the black box data; a full-service web-based portal that allows the insurer to view and analyse data in a user-friendly way; and a dedicated helpline offering assistance on how to use the portal.
It has also developed Unico, a claims reconstruction portal, that is able to use data from the black box to virtually reconstruct an accident instantaneously, allowing the insurer to get early indications on likely damage to the vehicle, injuries to those involved and the scope of the eventual claim. Such data can be used to detect potential fraud and to settle claims faster.
Unico can also help insurers use and interpret the data they receive to set premiums in a more accurate and competitive way. Typically, the rollout of the technology from implementation to seeing full results takes some three years. The costs of using the technology would be integrated into the quota-share agreement, which would run for a minimum of a three-year term.
The technology is available for carriers operating anywhere in the world. The integration of the technology has an associated cost but it is UnipolRe’s intention that a successful quota-share arrangement makes its integration beneficial for both parties throughout the term of the agreement.
While it is perfect for carriers looking to implement telematics for the first time in their portfolios, elements of the telematics offering can also be used on an individual basis. For example, an insurer already using telematics could benefit from UnipolRe’s expertise and data analytics tools using an advanced AI function, as well as the sophistication of Unico.
Integration
If a client is looking to complement an existing telematics system, UnipolRe can assess the effectiveness of a fleet of black boxes already in use, with an assessment of the quality of the data transmitted being a key factor; they can then integrate and personalise the portal depending on the specific needs of an insurer, and make recommendations around how the data collected can be used to enrich the tariffs.Integration
This is the second tool that UnipolRe has rolled out, as it continues in its approach as a more service-orientated reinsurer. The first was its Smart Capital Management Solutions tool, a capital management tool designed to empower reinsurance managers and buyers by helping them understand what effect their buying strategies will have on the internal capital models and overall risk profile of their companies.
Marc Guy Victor Sordoni, chief executive officer of UnipolRe, said: “One of the things that has always set UnipolRe apart as a reinsurer has been our ability to leverage the deep knowledge and expertise that exists in our parent company.
“Unipol Group has been a pioneer of telematics in Italy and it is fantastic to be able to leverage this to give our clients access to technology with the potential to revolutionise how they underwrite motor business.
“This has been very well received by clients so far and we expect it to help us form very meaningful relationships with our clients going forward. It is another thing that sets us apart.”
