Editorials

What is the downside of having real-time crash data sent instantly to insurers?

With telematics, the technology that could send real-time crash data – within seconds of an accident – to an insurance claims office, Cross Country Auto Services (CCAS) hopes to integrate connected vehicle data with claims management programs.

Dave Ferrick, a vice-president and program architect for CCAS, spoke about the benefits of his Accident Scene Management and Vehicle Release Management programs to insurers at a recent 2009 Auto Insurance Report National Conference in Naples, Florida. Over 300 insurance carrier reps, Wall Street analysts, insurance stock investors and other companies with connections to the auto insurance industry attended.

It sounds interesting, but let’s consider the implications.

The use of this technology might be one of those situations where technological advances have gotten ahead of our dealing with the economic, social and moral issues that could crop up with the use of these programs.

CCAS and the company they acquired, ATX Group, a long-time leading provider of connected vehicle (telematics) services, provide services to approximately 76 million motorists in North America through privately labeled programs for virtually every automobile manufacturer operating in North America. That’s a lot of connectivity.

Currently, policyholders might take up to 30 days to file an accident claim – if they file one at all.

This technology would take the choice of when and if to file a claim away from the policyholder.

Once insurers have this information – within seconds of the accident – they will have a very early opportunity to steer the claimant to towing companies and on to their preferred collision repair shops.

Do we want Big Brother watching us?