American Property Casualty Insurance Association: Insurers Highlight Safety Benefits of Telematics and Importance of Customer Awareness and Consent to Data Usage

CHICAGO, Illinois, March 19 -- The American Property Casualty Insurance Association issued the following news release on March 18, 2024:

The American Property Casualty Insurance Association (APCIA) today released the following statement, attributed to Robert Passmore, APCIA department vice president of personal lines, regarding the safety benefits of telematics and the importance of customer awareness and consent in data usage.

"Today's increasingly connected vehicles gather data that could benefit consumers significantly. Insurers have long advocated that vehicle owners must have access to data captured by their vehicles, and control over access to third parties. However, as recent media coverage has reported, consumer control over vehicle data may increasingly be limited and controlled exclusively by vehicle manufacturers.

"For decades, insurers have utilized telematics or usage-based insurance (UBI) products to help consumers save money on their auto insurance. The cost saving benefits of these programs have only grown in popularity as premiums increase due to inflation and the price for vehicle replacement and repairs continue to rise.

"Telematic programs use real-time information to document driver performance. The most common way that insurers obtain driving information is by working directly with their customers to collect driving data via a telematic device installed in the onboard diagnostic port (ODB II) of the vehicle, or more recently, through the use of smartphone apps. In both scenarios, the driver is fully aware that the data is being collected because they install the device or smartphone app themselves and must provide their consent to participate in the program.

"By drivers 'opting-in' to these programs, we have unlocked a new realm of safety benefits. Drivers are able to track their individual driving performance and improve safe driving behaviors behind the wheel, while traffic safety practitioners now have an accurate and effective tool to evaluate the real risk of distracted driving, which has long been an underreported risk on our roadways. In fact, Cambridge Mobile Telematics (CMT), the world's largest telematics service provider, has found a 23% surge in distraction since 2020. This increase in distracted driving caused an additional 420,000 crashes, 1,000 fatalities, and 10 billion in damages to the U.S. economy in 2022.

"By working in partnership with consumers, insurers are committed to giving drivers access to tools and resources that lower the price of auto insurance and make our roads safer."

The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/79421/