Future of Telematics: Connected cars in the cloud, Smart keys and Telematics insurance

A recent SBD report available from Global Information Inc, (GII) states that the next evolution in telematics could be connected cars in the cloud, smart keys and telematics insurance.

Over 30 vehicle manufacturers have launched telematics services in the U.S, China, and Europe- a 50% growth since 2010. Additionally 9 more vehicle manufacturers are planning to launch new services over the coming year. Over 19 million drivers covered by telematics-impacted insurance policies ; and over 15% of all new passenger cars in Europe being smart-key fitted.

This growing availability of connected car services will gradually lead to a surge in fitment rates for in-car connectivity. SBD forecasts that by 2015 over 30 million new cars will be fitted with some type of connectivity box.

But whilst there is a common industry-wide push towards enabling in-car connectivity, there are yet to be any major convergence in terms of technologies, business models or value chains. Although the opportunities to benefit from connectivity are rising, so are the risks associated with implementing the wrong strategy or falling behind competitors.One way to minimize this risk is to ensure that you always have the latest, most comprehensive and most accurate information at hand. This is why SBD has released a new edition of its interactive Connected Car Guide, which includes over 600 slides of insight.

Over the last two years, telematics insurance has been one of the most widely discussed topics within the Connected Car world. However, according to SBD’s research the market for telematics insurance is still immature and faces major challenges. Despite these challenges, SBD forecasts that by 2017 up to 19 million drivers worldwide will have an insurance policy that relies on some form of telematics being fitted to their cars. The growth will be primarily driven by Europe and USA, where insurers are particularly keen to search for new ways to manage risk and enhance their relationship with customers. Even within Europe, SBD forecasts that 75% of subscribers will come from just UK and Italy, demonstrating the highly fragmented nature of the opportunities for telematics insurance.

Availability of smart key systems has doubled since 2010 in Europe, and the rise in split smart start and smart entry systems has helped increase fitment rates to over 15% on all new passenger cars.Customer awareness, availability and fitment of smart key technology has certainly never been higher, but customers are still demanding more from their systems. The challenge for OEMs and suppliers is to offer the best possible features to improve the overall customer experience, but without impacting vehicle security or incurring excessive cost.

[via : prnewswire]

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