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Why MGAs Can’t Afford to Miss Out on Video Telematics

Why MGAs Can’t Afford to Miss Out on Video Telematics

With an overwhelming escalation in insurance costs, collisions, and nuclear verdicts, MGAs are seeking smarter, more sophisticated ways to resolve claims. We at Nexar are constantly looking for new ways to provide solutions to MGAs looking to improve their loss ratio. In this tech-driven world, video telematics can be game-changing.

Taking out the guesswork with visual ground truth

It all starts with the dash cam. These handy cameras are easy to install and have been “battle-tested” with millions of vehicles globally. One of the most promising new technologies in this space is video telematics, and in particular, video FNOL (first notice of loss) and collision reconstruction. With camera video footage, accident detection algorithms, and artificial intelligence, video FNOL systems can detect and report accidents to insurers within minutes of an event occurring. The result is an end-to-end visual validation solution reflecting the indisputable ground truth – so you can avoid scams and mitigate risk.

Speeding up claim resolution

Claim resolution can seem to be never-ending, and in the meantime, MGAs need to manage the dialog with all parties involved, keep the trust of all stakeholders and manage the risk and loss of having drivers off the road. With collision reconstruction, insurers receive complete scene reconstruction with 1st and 3rd party behavior, a detailed timeline, and full sensor and visual verification. This powerful video evidence accelerates the claim resolution timeline and reduces the chances of error or wasted dispute time.

Mitigate driver-related risk

With video telematics in place, insurers can review incidents and trips to identify risky drivers and assess driver-related risk. In addition, Video FNOL can help to ensure the security and integrity of the claim process, as it can be challenging to alter or forge video evidence.

Say goodbye to nuclear verdicts.

Nuclear verdicts are a rising concern for transportation companies and a significant factor in insurance rates. In fact, according to the American Transportation Institute (ATRI), the number of cases with nuclear verdicts over $1 million USD has increased by 235% between 2005 and 2019.

Jury verdicts for commercial auto losses over $10 million showed a gradual increase from 2010 to 2013 - with a low of $12 million and a high of $22 million - before rising dramatically in 2019, as stated by Advisen loss data. Preliminary data for 2021 shows a dramatic escalation over the prior years.

Video telematics can drastically improve an insurance company's loss ratio by speeding up claim resolution and driver exoneration, helping insurance companies reduce the overall number of claims and the associated costs. This visual ground source of truth reduces the chances of error or wasted dispute time and reduces the risk for nuclear verdicts and credit hires. Regarding Nexar's video telematics, specifically our proprietary low G detection, it's easy and straightforward to prove the extent of a collision with evidence that isn't detected otherwise.

Get drivers back on the road quickly and safely.

Taking claims ambiguity out of the picture using Video FNOL and Collision Reconstruction means quicker claims resolution. Insurance companies can exonerate drivers quickly, manage deductibles and improve communication with the insured. This gets them back on the road quickly and safely, turning a customer crisis moment into a customer loyalty moment.

Interested in Nexar's solutions for MGAs, commercial insurance and big fleets? Reach out to Dean Becker (Business Development, Nexar) to enquire about potential opportunities for your company.