Finity provides strategic, tactical and analytic consulting services to help insurers answer the big uncertainties in this exciting new field. Combining the big data revolution with technological developments could potentially change the face of motor insurance as we know it.
We work with you to develop a strategy that best fits your business plans and corporate objectives. Utilising our proprietary telematics financial model we can simulate a range of strategies and market responses to test the sensitivity of the business to the different possible futures regarding motor telematics products.
One of the first questions is what would it take for a telematics product to be financially feasible? What market conditions would be required to make this product enhance the profitability of a motor portfolio?
There are as many possible product designs as there are products. These products require robust infrastructure to support the data heavy analytics that underpin them.
Scoring and pricing
With a continuous stream of unstructured data, pricing telematics products will involve analysis unlike any before it. Finity already has vast experience in assisting clients with their pricing activities and these new data sources allow for a whole new range of analyses and pricing strategies.
Finity’s Telematics Financial Model
Finity has built a robust financial model that represents the financial dynamics of a telematics product. The model has been calibrated to the specifics of the Australian and NZ markets and can simulate a range of strategies and market and competitive responses. The model allows insurers to test the likely outcomes of different strategies and can assist in building up a business case or indeed to answer one of the key questions – what if I don’t do anything?
We work with our clients to further tailor the financial model and its output so they can use the results internally to provide a foundation to the development of their telematics strategy.
During April and May 2014 we undertook Australia’s first telematics survey of insurers. This survey provided valuable direct insight into the major market participants’ views on how their telematics strategy is placed with respect to the market.
Making the most of our relationships with a wide spectrum of insurers in the Australian motor insurance industry, we have obtained an informative cross-sectional view of where the market is placed and the expectations of many of the players.