Technology has cut its transformative swath through the media, transportation and hospitality industries. Insurance could be next.
Telematics, the long-distance transmission of computerized information, is a small but growing element of the insurance business. If adopted on a widespread basis, it could revolutionize the underlying risk-spreading methods used for generations, analysts say….
Progressive (NYSE:PGR) has been among the leaders in this area, permitting its customers to insert a “Snapshot” gadget into their cars in order to provide increasingly sophisticated information about their driving habits.
“It made more sense to price premiums on how you actually drive,” said David Pratt, Progressive’s general manager of user-based insurance.