Saudi Arabia – Telematics to help price motor insurance
Thursday, 08 31 2017, Category: Insurance and Reinsurance, Country: Saudi Arabia
A governmental committee is currently studying a project related to Usage-Based Insurance, which is based on the installation of telematics by the mutual agreement of insurance parties. These telematics instruments will track the movement of the vehicle, the behavior of the driver and the surrounding environment. According to the data gathered by the telematics instrument, the price of insurance will be evaluated. The sources quoted by “Al Watan” newspaper expect that the project will be adopted soon, indicating 10 advantages for such an implementation. It will also help determine fair and accurate insurance prices, help insurance companies avoid risks proportionally, and ensure a fair agreement for both parties in motor insurance.
According to sources, the committee finalized the “bid requirements and specifications” in order to commission an international consulting company for this project, which will be announced soon with more details about its implementation and deadline. The project aims at reaching fair and accurate prices, help insurance companies avoid risks proportionally, and incite motor drivers to decrease traffic accidents.
Source: Al Watan Online