Telematics Pressure Is On for Midsize Carriers

It would seem as though the Personal Auto insurance industry has shifted into overdrive as large insurance companies like Progressive, State Farm and Allstate are aggressively promoting their telematics programs and associated discounts to attract the best risks. Many of these large carriers have been developing their telematics (or pay-as-you-drive) programs for years.

For midsize carriers, competition to gain new customers—and more importantly, retain existing customers—in the Personal Auto insurance market is heating up at an unprecedented pace. While some midsize carriers may feel the pressure to implement telematics initiatives of their own just to keep up, many others are taking advantage of new technology and creative solutions to combat adverse selection without actually putting telematics devices in customers’ cars.