Telematics innovation comes with the increase in compensation volumes in the insurance sector.
SANT ‘ANTONIO, August 17, 2022 / PRNewswire / – Today, USAA announced it is among the first auto insurance companies to implement accident detection technology, an innovation that simplifies and accelerates the claims process. This technology comes at a critical time as automobile accidents have surpassed pre-pandemic levels, exacerbating supply chain problems and delays experienced by consumers nationwide.
Crash detection technology, integrated into USAA’s SafePilot® app, has generated over 36,000 crash notifications since its November 2021 launch. The technology leverages smartphone sensors within the app to detect a possible collision and requires the member to check if an accident has occurred. Once verified, the app immediately offers helpful information, including safety guidance at the accident scene, the ability to file a claim via a streamlined process, or the ability to call 911 directly from the app.
“Ultimately, this comes down to ensuring our members are safe and helping them get back on their feet faster,” he says. Luke Harris, Vice President of Innovation for USAA. “We are constantly looking for innovative ways to make life easier for our members, something USAA has focused on for over 100 years. Using telematics and incident detection technology, we can provide a smoother member experience and a faster resolution of complaints. ”
Collision claims on the rise to pre-pandemic levels
As innovations in telematics improve the claims process, the insurance industry continues to contend with an increase in the volume, severity and cost of motor vehicle accidents. The USAA handled 500,000 more claims in 2021 than in 2020, a trend widely felt as restrictions on the pandemic were lifted and more cars returned to the roads.
The severity of accidents is also increasing. The National Highway Traffic Safety Administration (NHTSA) recently announced a record number of traffic fatalities for 16 years, raising concerns about the increased danger on the roads. With the increase in serious accidents, the cost of repairs has also increased significantly. In 2021, the USAA saw collision repair costs increase by 38% compared to 2020 and is currently in the process of seeing a further 30% increase in 2022. Also, as inflation has impacted the price of goods and services, insurers are seeing an increase in vehicle repair costs resulting from supply chain problems and parts and labor shortages.
Among these changes, telematics-based insurance plans have become very popular among USAA members as they look for ways to save on insurance premiums:
- SafePilot®, USAA’s Behavior Based Insurance (BBI) plan, rewards safe driving behaviors with premium discounts. Members who join are entitled to discounts on the initial policy of up to 10% for membership and discounts on the continuing policy of up to 30% for safe driving behavior. Driver enrollment is over 200% higher than 2021 for SafePilot®, which is now available in 43 plus states Washington DCwith plans to expand to nearly all states in 2023.
- The USAA now also offers pay-by-drive, a usage-based insurance (UBI) option that determines rates based on how much and how safely you drive. USAA acquired the product from Noblr, Inc. in 2021 and is currently available in 10 states, with plans to expand to most states in 2023. This product is becoming popular with members who now work from home or use other forms of transport (e.g. bicycle, public transport) as the primary means of travel.
To find out more about these offers, visit USAA.com/drive.
About USAA
Founded in 1922 by a group of military officers, USAA is a leading provider of insurance, banking and investment and retirement solutions to more than 13 million US military members, veterans who have served with honor and their families. Based in Sant ‘Antonio, USAA has offices in eight US cities and three overseas offices and employs over 38,000 people worldwide. Each year, the company contributes to national and local nonprofits to support families and the military communities where employees live and work. For more information on USAA, follow us on Facebook or Twitter (@USAA), or visit usaa.com.
Contact: USAA Media Relations
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SOURCE USAA
