1. A Smarter Auto
Insurance for the
Hyperconnected World
Telematics is becoming a
necessary capability for
dealing with the future of
insurance. Many different use
cases are enabled by the usage
of telematics data. Pricing
sophistication is one of the
opportunities to move to the
next level of adoption.
Insurance is about assessing, managing and transferring risk.
Telematics enables insurance to be done in a smarter way by offering
a personalized experience to policyholders. The reasons for using
telematics data ranges from improving the customer engagement,
to impacting the core insurance processes, to using the new
knowledge about policyholders and their risks, to improving
sustainability and the creation of value-added services.
Talking of impacting the core insurance processes with telematics,
Earnix has mastered the usage of this data for pricing
sophistication, making telematics data available as a core
component of the analytical rating engine. Such steps enables
carriers to leverage to the full extent the availability of data and use
them across the board to rate and price consumers accordingly. Not
to mention the same data has a valuable personalization appeal to
make commercial offers to customers, and use those elements as a
strategic retention tool knowing when it’s the right time to do so.
By doing so, Insurance carriers will better understand their
customer profiles and risks, improving sales and profitability,
therefore, making the usage of telematics data a concrete
opportunity in all geographies.
The US market has focused the most on the usage of telematics
data for enabling continuous underwriting use cases. Robust
evidences have clarified the economic
A Smarter Auto Insurance for the Hyperconnected World 01
Matteo Carbone
Director of IoT Insurance Observatory
& Net Insurance Board Member
Massimiliano Kisvarday
Sales Director of
Telematics, Earnix

2. benefit of a sophisticated telematics-based pricing, and more
large incumbents are exploiting the opportunity to personalize
their pricing.
We believe that this pricing approach will help UBI move to the next
level of adoption; convincing motor insurers that driving data is no
longer something to experiment with just because some of the
competitors have it. Today, it’s truly an element that cannot be
disregarded in managing today's motor business.
Some insurers worldwide have already successfully introduced
a wide range of telematics-based applications. However, motor
insurance telematics is still at the beginning of the development
curve. Based on the IoT Insurance Observatory research, there
are less than ten insurers globally with a portfolio bigger than one
million telematics-based policies.
In Europe, usage of telematics data has not yet scaled to full
potential, and still is rarely used to assess drivers risks for modeling.
UBI is either a small niche or telematics usage is limited to risk
selection & claims management where it has scaled. The two
most advanced markets have been Italy and UK, with recent
developments in Germany.
A Smarter Auto Insurance for the Hyperconnected World 02
20M
At a global level, more than 20 million
policyholders exchanged telematics
data in 2020.

3. In the UK, UBI is still considered a product for young drivers.
The opportunity to move “from a niche underwriting solution
focused on younger and low-mileage drivers to a mainstream
solution broadly applied on motor portfolios” has still to be
addressed. *quote attributed to who?
Italian personal auto insurance is still globally in a leading position
regarding telematics portfolio size, value proposition towards its
customers and demand of such services. Telematics data are
used across various use cases in the insurance value chain,
with many insurers mastering its usage for self-selection of
the risks, for claim management, and for delivering services
to the policyholders, increasing the robustness of business
case for the insurance company.
For sure the European markets can leverage from the recent
development in the US market, where the transition to the less
expensive mobile-based approach has driven the growth of the
penetration and it has made the business cases more sustainable.
Meanwhile, technology and the usage of data in our society have
scaled very fast. Consumers love to interact with their smartphones
and digital tools and large tech companies have managed to address
consumers' needs based on the collected data with highly targeted
offers which consumers seem to like.
Not to mention the fact that a mobile based approach is truly great
for pricing and underwriting due to the nature of the data collected
which reflects the risk of the persons and their mobility.
The usage of telematics data will continue to grow as the experience
of the carriers will mature and cost of technology will lower making
it very accessible for many. Data sources will also increase, letting
carriers select and create a powerful mix of elements that will help
to better assess drivers risks.
A Smarter Auto Insurance for the Hyperconnected World 03
21.5%
In the Italian market, Telematics
was already present in 21.5% of
the personal motor policies at
the end of 2021.
We believe Telematics is
becoming a necessary
capability for dealing with the
future of insurance and there is
a concrete opportunity to
operationalize with telematics
any motor book of business!

4. A Smarter Auto Insurance for the Hyperconnected World 04
IoT Insurance Observatory is a global insurance think-tank,
which has put together executives from more than 70 insurance
groups, Institutions, and the Internet of Things ecosystem to discuss
the great potential of the most mature Insurtech trend, as well as the
challenges it poses to the insurance business. The focus is on any
insurance solution based on sensors for collecting data on the state
of an insured risk and telematics for remote transmission and
management of the data collected
The think tank membership provides access to the most globally
relevant insurance IoT knowledge, and its goal is to promote a
profitable IoT adoption in the insurance industry.
iotinsobs.com
Earnix is the premier provider of composable intelligent
solutions designed to transform how global insurers and banks are
run. Earnix solutions unlock value across all facets of the business,
connecting with customers, and breaking away from the status quo
imposed by legacy monolithic, single systems.
Earnix’s solutions offer systemized, enterprise-wide value with ultra-
fast ROI. It has been innovating for Insurers and Banks since 2001
with offices in the Americas, Europe, Asia Pacific, and Israel.
For more information please visit: earnix.com.