For a few years now, auto insurer
Progressive (
PGR
)
has offered a service called
Snapshot
,giving customers use of a technology that plugs into their
cars and records driving data in exchange for premium reductions.
The data recorded includes miles driven, times of day while
driving, driving speed, and braking.
After gathering enormous amounts of data, insurers believe
theywill have more reliable predictors for driver safety, and
hence better premium designations.
Even if he were the most timiddriver on the planet, a
17-year-old in a Ferrari is almost certain to get an exorbitant
insurance rate quote. Better driving data would make the process
more nuanced, and hence more competitive.
Some say that before longinsurance
telematics will be standard
;however, at present time the option is user-selected. With
this optional service, safe drivers are more likely to sign up than
dangerous drivers, since they stand to earn greater premium
reductions. Whats more, knowing that a Big Brother of insurance is
watching, drivers are almost certain to drive more safely, whether
consciously or not.
Because Progressive
isnt currently raising premiums
when Snapshot records shoddy driving.The obvious
conclusion? Snapshotconstitutes a relativelylong-term
investment in actionable information down the road, the groundwork
of a Big Data initiative.
Do you think investing in telematics will be profitable for
insurance companies in the long run? Take a look at the list below
and let us know what you think in the comments.
Click on the interactive chart to view data over
time.
1. The Allstate Corporation
(
ALL
,
Earnings
,
Analysts
,
Financials
): Engages in the personal property and casualty insurance, life
insurance, retirement, and investment products businesses primarily
in the United States. Market cap at $25.38B most recent closing
price at $58.47.
2. General Motors Company
(
GM
,
Earnings
,
Analysts
,
Financials
): Operates as a global automaker. Market cap at $60.27B, most
recent closing price at $37.95. Is the parent company of the OnStar
Corporation and National General Insurance.
3. Mercury General Corporation
(
MCY
,
Earnings
,
Analysts
,
Financials
): Engages in writing private passenger and commercial automobile
insurance in the United States. Market cap at $2.55B, most recent
closing price at $46.56.
4. Progressive Corp.
(
PGR
,
Earnings
,
Analysts
,
Financials
): Provides personal and commercial automobile insurance, and other
specialty property-casualty insurance products and related services
primarily in the United States. Market cap at $14.90B, most recent
closing price at $25.16.
(List compiled by Ben Levine. Monthly return data sourced
from Zacks Investment Research. All other data sourced from
finviz.)
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