More than 70% of Australian businesses have integrated artificial intelligence (AI) into their digital framework by March 2023, aiming to benefit both themselves and their clients.
Insurance providers have harnessed this technology to revolutionise the insurance industry.
By leveraging AI and telematics, insurance companies have customised policies based on driving behaviour, and utilised a behaviour-based formula to assess clients’ crash probability of their driving history.
“The use of AI in insurance is blending data and algorithms to revolutionise protection,” says underwriting agency Fuse Fleet director Luke Kelly.
“To stay relevant, insurers must begin leveraging technology to enhance customer experiences, deliver personalised coverage, and build a future where resilience conquers risk.”
Behaviour-based premiums calculations
Traditionally, fleet insurance premiums were determined on factors such as parking location, vehicle type, and claims history.
However, agencies like Fuse have introduced AI and a behaviour-based formula to link clients’ crash probability to their driving behaviour.
Fuse uses pattern profiling with artificial intelligence to make a profile out of every second of driving. This creates a DriverDNA for the whole trip, from start to finish.
The technology recognises micropatterns in driver behaviour to create a unique DriverDNA for each trip and compares this against a database of more than seven billion real-life trips to determine the trips crash probability.
This system rewards responsible driving behaviour, leading to reduced accidents and fairer insurance premiums.
Personalised policies
The advent of AI and telematics allows insurers to offer customised policies based on the specific needs and driving behaviour of each fleet.
By considering factors such as driver performance, vehicle usage patterns, and even real-time driving data, insurers can create policies that align with the risk profile of each fleet.
Data is driving fairer premiums
With the integration of AI and telematics, insurance providers now have access to vast amounts of real-time data about fleet vehicles.
This data includes information about driving behaviour, location, and vehicle diagnostics.
Insurers can gain valuable insights into risk profiles, enabling them to tailor insurance policies based on individual fleet characteristics.
This data-driven approach ensures that premiums are more accurately calculated, reflecting the actual risk associated with each fleet.
By taking advantage of the AI revolution, insurance providers are challenging traditional premium calculation, customising policies and promoting safer driving practices.
This digital revolution ensures that clients have access to more accurate and personalised insurance coverage, ultimately leading to a safer driving environment for all.
About Fuse Fleet
Fuse Fleet offers connected insurance combined with claims management solutions in Australia. Fuse’s mission is to revolutionise fleet risk management by introducing digital insurance incentives for safer fleets and lower premiums.
With more than 30 years of experience in motor fleets and risk advisory services, Fuse specialises in providing tailored insurance solutions for fleets and ensures better, faster, and cost-efficient claims for fleets through its innovative, fully digitally enabled end-to-end claims management solutions.
