Telematics is often launched as a product. A usage-based tariff. A discount programme. A standalone app.
That framing is understandable, but it’s also the reason many telematics initiatives stall.
When telematics is treated as a single product, its impact is narrow, ownership is fragmented, and the business case becomes fragile. Engagement drops. ROI gets questioned. Momentum fades.
The problem isn’t telematics itself. The problem is how it’s understood.
The core shift: from product to data layer
Telematics is not a feature you sell. It’s a behavioural data layer, a capability that creates value across the entire insurance lifecycle.
This distinction matters.
- Product thinking leads to isolated use cases, single-team ownership, and ROI tied to one KPI.
- Data-layer thinking unlocks cross-functional value, shared ownership, and compounding returns over time.
One capability. Multiple business wins.
Why product-centric telematics fails
Most struggling telematics programmes follow the same pattern:
- The initiative is owned by one department (often marketing or product).
- Success is measured against a single outcome (discount uptake, app installs, engagement).
- Other teams see it as their project, not our capability.
As a result:
- Underwriting sees limited relevance.
- Claims gets the data too late or not at all.
- Strategy struggles to justify long-term investment.
Telematics becomes optional – and easy to cut.
What changes when telematics is a behavioural data layer
A behavioural data layer doesn’t belong to one team. It supports many.
Instead of asking “What telematics product should we launch?” the better question becomes:
“Where can behavioural insight improve decisions across the business?”
Here’s what that looks like in practice.
Underwriting & Pricing: behaviour as a signal, not a gimmick
When telematics is reduced to discounts, underwriting value is shallow.
As a data layer, it enables:
- Behaviour-based segmentation alongside traditional rating factors
- Fairer, more defensible pricing grounded in real-world usage and driving patterns
- Reduced adverse selection by identifying good risks inside noisy segments
The insight isn’t about rewarding or punishing drivers. It’s about making better risk decisions – earlier.
Claims: context beats reconstruction
Claims teams don’t need more dashboards. They need better context.
A behavioural data layer provides:
- Richer incident context at FNOL
- Earlier intervention through risk signals and preventive alerts
- More efficient handling by reducing uncertainty around what happened and how severe it was
The value isn’t the raw data. It’s the ability to act faster and more confidently.
Customer & Retention: value beyond price
Standalone telematics apps often live or die by engagement metrics.
As a data layer, behavioural insight enables:
- Continuous digital touchpoints tied to real-world behaviour
- Clear value signals beyond price (safety, prevention, relevance)
- Stronger loyalty indicators driven by usefulness, not gamification
The value isn’t the app, it’s the insight.
Product & Strategy: one capability, many options
When telematics is treated as infrastructure, not a launch event, strategy changes.
Teams gain:
- Faster experimentation with UBI, hybrid models, or preventive services
- Reuse of the same capability across multiple products and markets
- A clearer ROI narrative that spans underwriting, claims, and retention
Investment becomes easier to defend because returns compound.
The compounding ROI effect
Here’s the key insight:
- When telematics is treated as a product, ROI is narrow.
- When it’s treated as a behavioural data layer, ROI compounds.
Each new use case doesn’t restart the business case, it builds on the same foundation.
Adoption doesn’t require a big-bang launch
Crucially, insurers don’t need to “launch telematics” to benefit from behavioural data.
A data-layer approach can be introduced incrementally:
- Start with a single, high-impact use case
- Keep scope narrow and ownership clear
- Expand horizontally as other teams tap into the same insight
No standalone app. No full-scale rollout. No organisational shock.
Telematics doesn’t belong to one team.
Closing thought
Telematics isn’t a product category. It’s a way of understanding behaviour – and using that understanding across the business.
The insurers who get value from telematics aren’t the ones who launch the loudest programmes. They’re the ones who quietly turn behaviour into a shared asset.
Want to explore this approach?
If you’re evaluating telematics but hesitant about a full rollout, a pilot-first approach can help activate behavioural insight without committing to a standalone product.
Start small. Prove value. Expand where it matters.
