black box claims explained for uk motor insurers
Black Box Claims
Winn Group has been utilising black box claim technology to enhance their service offering for over a decade.
Ensuring an effective, efficient, and cost-conscious approach to claims management, we are delivering value for money for the insurer and the client, while maintaining outstanding client care.
An introduction to black box claims
Black box claims have become a staple of the motor insurance market, turning a tit-for-tat subjective claim and counterclaim into an evidence-based process.
By reducing reliance on individual interpretations, a black box and its data collection can provide much-needed clarity on how the accident unfolded, which in turn gives customers outstanding protection and support from their black box insurance.
For insurers, their bottom line improves with faster settlements, lower fraud losses, and defensive liability decisions based on statistical analysis.
Their customers can make tangible savings based on their driving behaviour and the patterns that form as a result.
For an increasing percentage of the insurance market, using the detailed specifics that black box technology can offer ensures an incredibly effective and efficient approach to insuring motorists.
What a black box captures during a claim
As soon as the vehicle is in motion, the black box will start recording a range of data related to the journey itself and the driving behaviours being displayed by the motorist.
Combined, these build a comprehensive picture of the accident, should there be one, and help all concerned ascertain what happened and who was to blame.
Black box insurance, also known as telematics insurance, is a policy based on driving patterns, which create a profile of the driver that can be rewarded if displaying positive behaviours.
The data collected by the black box is the foundation for this profile. Boxes, usually located within the vehicle, collect data throughout a journey and become particularly important if an accident occurs.
It will detect the G-force readings from a 3-axis accelerometer, the direction of travel and the direction of impact involved. It will be able to deliver the time and date, precise to the second, of the accident, as well as the GPS location of the incident.
A crash signature can also be deciphered from the information provided, helping telematics FNOL teams to distinguish between a genuine collision and something less dangerous, such as going over a pothole.
It can also provide invaluable information such as pre-crash driving behaviour, typically the last 30-60 seconds, to get a solid picture of how the vehicle was being driven prior to an incident taking place.
Perhaps one of the most important elements of information obtained, the black box can also identify the speed at the moment of impact. Speeding above the road’s limits can suggest erratic driving; doing the legally
required speed or less suggests a much safer approach to the crash scene.
The data flow from incident to FNOL
Although the data flow from the black box begins as soon as the journey does, when an accident happens, the accident reconstruction telematics procedure kicks in.
It starts with the crash detection algorithm being triggered by the impact. This sends an alert to the telematics insurance provider, and their telematics claims processing team puts relevant processes into action as
part of an automatic FNOL.
That’s people contacting customers; that’s claims handling kicking into gear to provide the support and assistance required based on the circumstances. The claims handler will analyse the statistics, reviewing the data before actioning next steps.
The data then provides the foundation for any potential claim going forward; used as evidence, it paints a clearer picture of the circumstances, with a more detailed incident reconstruction possible, alongside the more subjective witness statements. Both combined help to get to the core of the incident.
That data transfer from box to telematics platform happens within seconds of the incident, and the claim can start as quickly as that.
How the data informs liability decisions
As soon as the automatic FNOL process is started, the data immediately guides the forthcoming process, but it also begins to inform liability decisions.
By collating the speed at impact, this assists in corroborating or contradicting the witness statements coming from those involved, who may have differing recollections of how events unfolded.
By mapping out the direction of travel data, a claims handler can establish accident geometry and clearly see who was going where and which way.
That information can also build a profile of the pre-crash behaviour of the driver; were they heavy on the brakes? Did they take corners sharply? Was there any reaction to the impending incident? If not, it would suggest a lack of focus and attention to the road ahead.
Even the time and location data from the black box will help to confirm details or flag discrepancies in accounts being given by those involved and provide reliable clarity, thus avoiding possible tit-for-tat hearsay and counterclaims.
A valuable resource, the black box data provides a solid base for evidence that can be used in relation to identifying liability or denying it.
"We were really impressed by the results of Winn Group’s 24/7/365 FNOL solution and the high client care standards maintained.
Using the 24-hour working operation to enhance their service offering, Winns is a market-leading accident management company offering a market-leading service."
Ian Donaldson, CEO Ardonagh Retail
"Winns way of handling claims under one roof offers a seamless customer journey, which is invaluable to our policy holders, with customers particularly impressed by the attentive nature of staff and their ability to take the stress out of a difficult time in the aftermath of an accident."
Paula Coulthard Griffiths, Vice President Marshmallow
“We’ve worked with Winns for in over 15 years and found their customer care standards and delivery of service levels to be excellent, consistently delivering for our customers.
Their customer facing teams work quickly and hard for our customers; they’re a benchmark for the rest of the sector."
Richard Dornan, Managing Director Premium Choice
Ready to work with a provider that has experience, expertise, and a determination to assist clients?
Fraud detection capabilities
An alternative view of telematics, but of similar importance to building a claim, is the ability to utilise the data transmitted to detect fraudulent activity.
Staged collisions can be seen in the data by analysing impact patterns and comparing them to the physics of the accident. If inconsistencies appear, this could be an early indicator of fraudulent characters attempting to claim.
Confronting industry-wide issues around potential ‘cash-for-crash’ scenarios, it lessens the cost of fraudulent claims and their frequency. It can also provide insight into exaggerated injury claims when the g-force at impact doesn’t correlate with the severity of injury being reported.
These ‘cash-for-crash’ instances can also be identified by the braking patterns of the vehicle involved - sudden braking may be indicative of purposeful action to create a collision – making the use of telematics and black boxes multi-purpose and cost-efficient across the claims journey.
Winn Group has been delivering telematics capabilities, including detecting telematics fraud, for over 10 years. We sit proudly at the forefront of telematics operations thanks to an approach founded on experience and delivered by a team of experts who assist our clients wherever possible during the process.
Settlement implications
The use of black box claims has a number of implications when it comes to settlement.
From faster decision-making, thanks to objective data that helps paint a clear and accurate version of events, to lower compensation costs, the savings in time, cost, and manpower are evident.
By producing accurate liability assignment quickly and with a greater degree of certainty, this accelerates the process thanks to a speedier collection of indicative evidence courtesy of the black box.
In turn, the duration of a credit hire vehicle being involved in the claim, and also the time a damaged vehicle spends in storage, is diminished, thanks to extra efficiencies when determining fault.
Lower repudiation rates also enhance the insurer’s bottom line.
All of the above filters through to a better customer experience, as a faster resolution brings a quicker return to their day-to-day life before the accident.
Winn Group's Operational Approach
Winn Group has been diligently focusing on the telematics sector for well over a decade.
With experts in our telematics teams, based on consistent and repeated data analysis and accumulated on-the-job experience, Winns offers a service that is founded on real-life experience, helping our staff build a realistic and relevant type of expertise.
This has heavily influenced our processes and procedures so we’re able to dynamically mould our working practices to be as efficient and effective as possible in applicable scenarios.
Effective reading of the data and enacting the appropriate responses can be a hugely beneficial asset to policyholders, providing assistance as quickly as possible.
Winns has that capability and is standing by to assist.
FAQ's
How does a black box affect an insurance claim?
A black box can have many positive effects on an insurance claim, with incident data ensuring objective evidence that can lead to effective liability assignment; the savings in time, human input, and cost ensure the claims process is conducted efficiently.
Can black box data prove fault?
Black box data can provide great insight when establishing fault in an accident. The data provided paints a clearer picture of how the event unfolded, with that data used to either confirm or contest the witness statements provided by those involved.
How quickly does a black box report a crash?
The crash detection algorithm will be triggered in the event of an accident, based partly on the g-force generated by an actual collision. This is transmitted within seconds to the telematics platform provider, beginning an appropriate sequence of actions aimed at assisting.
Does a black box detect insurance fraud?
A black box doesn’t directly detect insurance fraud, but the data transmitted by one can highlight inconsistencies in versions of events, or in relation to how the incident unfolded, which can point to fraudulent activity.
Who has access to the data after an accident?
The telematics platform provider has access to the data, allowing them to use it as evidence to build a picture of the incident and how it happened.
Conclusion
For a full operational picture of Telematics Claims Management and what Winn Group can offer, click on the link to be taken to our dedicated information page.
In an evolving insurance industry where efficiencies and effectiveness are at the forefront of the consumer’s thinking, now is the time to consider telematics as part of your customer product offering.
Ready to discuss claims volume, capability, and capacity with a telematics platform provider?
Get in touch with Winns today.
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