Traveling to a World of Smart Transportation with Telematics

May 4, 2018

Traffic Management

Though the automotive industry had experienced an economic meltdown from 2008 to 09; over the years, the industry has fought back and has emerged triumphant in re-establishing themselves. However, much has changed between then and now. Markets, especially in developed countries, are saturated. Customer demands across geographies are considerably different – what sells in a developed country is not what is required in an emerging economy. This is causing automakers to seek new business models to boost continued spending on existing vehicles rather than drive the consumption of new vehicles. This explains the renewed focus on a type of intelligent transportation system called telematics.

Telematics is a communication technology that is based on information flowing to and generated from vehicles via wireless networks. It is the convergence of wireless communications, in-vehicle electronics, and location technology – pushing the automobile industry into the information age. From driverless cars to get real-time traffic updates and on-demand infotainment, the smart transportation system has endless potential to improve significantly the efficiency and safety, as well as the enjoyment of drivers and co-passengers.  Here are four examples of how telematics will transform the future of driving and smart transportation systems:

To know more about how telematics will facilitate smart transportation, request more information below.

Relaxing Traffic Congestion

Don’t we all just hate getting stuck for hours in a long traffic jam? Smart transportation in the form of connected cars has the potential to reduce the odds of traffic congestion on city roads and control the traffic flow creating higher fuel efficiency and driver safety. The telematics technology works by using the data from the traffic system to identify and share the green light sequence with drivers through either a smartphone or a dashboard alert so that road users can adjust their speed to align with the cycle of the green light signal. Furthermore, it is predicted that automatic braking systems linked to connected vehicles could eliminate traffic jams by 2020. With where technology is headed, we can expect road congestion to be a thing of the past within the next decade.

Actionable Insights for Insurers

The use of telematics provides limitless opportunities to convert data into insights and action. For car insurance providers, in particular, the behavioral, traffic, and locational data that telematics can collect can help them to generate more intelligent risk forecasting to determine more customized premiums. Insurers are also able to utilize this smart transportation technique to identify accidents in real-time, which enables them to capture a higher percentage of the repair business. This means that they will be able to reach out to customers immediately. This subsequently reduces the leakage of repair work to independent repairers.

Improvements in Fleet Management

Fleet services have traditionally been highly bespoke and expensive. However, widespread adoption of the intelligent transport system and connected services in the consumer segment will disrupt the traditional model. While GPS technology can track an individual vehicle’s location, status, and speed, this doesn’t enable the information to be detected across a fleet service. A fleet telematics solution is hence needed to facilitate vehicle tracking – providing a variety of benefits to businesses that rely on the rapid delivery of products and services. Moreover using the information provided via telematics, fleet services can also better allocate resources, manage fuel and labor usage, and costs.

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