Today the technology of GPS for tracking cars and other vehicles has become an essential element. With the continuous development of the economy post 2008 worldwide crisis, Global car ownership at the end of 2015 stood at a figure of 1.3 billion and is expected to cross 1.8 billion by 2020. That means a jump of almost 40 percent in just five years. The current revenue level stands at USD 228 billion. The auto insurance industry is set to break through the figure of 1 Trillion USD by 2020. But there are a few hurdles in front of the industry.
The Auto Insurance Industry faces the following challenges:
- Annual Growth Rate has dipped to 2.8% between the period of 2011-16.
- Crashes per year (in millions) has increased from 1.5 million to 2.5 million between 2010-14.
- In 2015, auto loss ratio jumped to 80.2% (for every dollar collected in premium, 80.2 cents were paid out in claims)
- Traffic Deaths increased to 7.7% over 2014.
- Bodily injuries stood at 32.1% between 2005 and 2013.
- Distracted driving cases reached a whopping 87%.
- One in 4 crashes involved cellphones
UBI is actually the solution required by Auto Insurance Industry. As the name suggests, it is a User Behaviour Based Insurance Service which takes into account many kinds of data such as driving behavior, car mileage, vehicle identification number, the environment in which the user is driving the car, etc. UBI is based on a simple principle that it is not the car which approaches for claim rather it is the driver.
It is estimated that by the end of this decade, 30-40% of car owners will avail the services of UBI Insurance providers. In a way, UBI has become the future for Auto Insurance Industry which calls for partnership and cooperation between Insurance Companies and providers of OBD Vehicle Tracking Devices.
There are tons of GPS Tracking Devices available in the market with different sets of features. The best one for this scenario is an OBD2 GPS Tracking Device. Every car is equipped with a 16-pin OBD Port for accessing vehicle diagnostics information and engine performance data. An OBD Car Tracking Device fits into this port and not only provides real-time vehicle performance statistics but also offers real-time vehicle location due to GPS functionality.
Insurance Companies require a stable product from a dependable Service provider who has had experience in providing GPS Tracking Solutions. The tracker should have the following features
- Real-Time Tracking
- Route and Location History on demand
- Geo-Fence or Electronic Fence
- Multi-Alarm System
- Records Driving Data
- Integration with a Cloud Platform