Insurance providers in some countries incentivise motorists who drive vehicles fitted with a dash cam. LIZETTE ERASMUS, Insurance Expert at IntegriSure, debates whether dash cams can play a bigger role in the local short term insurance industry.
Road accidents, some of which are fatal, are a regular occurrence on South African roads. Transport Minister Joe Maswanganyi released road death statistics showing a 51% increase in fatalities during the 2017 Easter period – raising concern for safe driving on the roads. The role of dash cams (or car dashboard cameras) in helping motorists with responsible driving has been much debated around the world.
Social media is littered with dash cam footage of road rage, irresponsible driving and bad accidents. With such availability of driver behaviour evidence, should dash cams play a bigger role in settling motor accident claims, determining premiums and be used as a tool to incentivise drivers in South Africa?
Unlike South Africa, insurance providers in some countries incentivise motorists who drive vehicles fitted with a dash cam. According to insurance companies in the UK, having a dash cam could reduce the premium by up to 15%.
Risk profiles depend on many factors
Being able to provide additional evidence that you were not at fault when a motor accident occurs can be beneficial during claim stage and even fast track the process. Many factors go into the process of determining a risk profile and therefore setting a premium. However, the willingness to install a dash cam for visual evidence in the event of a claim could indicate to insurance providers that one is a responsible person and consequently reflect in their premiums.
However, the bigger picture will always come into play. Your credit record, claims history, length of time you’ve had a driving license, as well as the security measurements taken, will influence the premium an insurance provider settles on for a specific client. Even if adopted, the installation of a dash cam will need to be evaluated in light of the other aspects of determining a risk profile.
Detecting fraudulent claims
Economic pressure unfortunately causes fraudulent behaviour and insurance providers have fallen prey to this type of behaviour.
Russia was one of the first countries to widely embrace the use of dash cams, mainly as a defence against police corruption, as well as insurance fraud such as ‘crash for cash’ scams. Crash for cash scams happen where fraudsters deliberately cause ‘accidents’ by running or driving into the road as soon as a car approaches, with the aim to claim for insurance.
To an extent, dash cams provide proof of foul play in the instance of this type of fraud. In addition, dash cams can help avoid the he-said she-said scenario at claim stage.
Dash cams assist with the collection of evidence, but do not eliminate the need for a thorough investigation into an incident. Dash cams see broadly into the road, therefore other detail on the road may be missed by the camera lens – which is where an eyewitness account is still vital. Insurance providers still have to conduct thorough investigation to assess the incident and the resultant damage. Dash cams do, however, assist in speeding up the process and giving a greater scope of what happened.
The unintended consequences of dash cam adoption
As with anything, insurance providers will have to contend with other unintended consequences when assessing the viability of adopting dash cams – one of which is a legal risk. While recording via a dash cam is not illegal, sharing such footage may be an infringement of people’s right to privacy. Dash cam footage is commonly shared on social media, which can be seen as violation of privacy, resulting in litigation. Insurance providers must consider the risk of being party to these types of cases when encouraging the use of dash cams, and appropriately educate consumers.
Dash cameras benefit motorists and vehicle owners
Most dash cams are linked to the engine and are therefore programmed to start recording as soon as the ignition starts which is also beneficial in ensuring the dash cam is always recording. This could very well be a prerequisite should the technology be adopted by insurance providers. For fleet owners, dash cams can help them monitor whether their drivers are driving responsibly or not.
A vehicle owner who lends a friend their vehicle is also able to monitor their friend’s driving behaviour through the dash cam footage. Furthermore, viewing footage of your own driving can help improve one’s own driving, as you can watch and review where you need to correct your driving behaviour.
The use of technologies such as telematics and tracking devices has been adopted by the South African short-term insurance industry, and dash cams could be another device to investigate to add to that list. When all is said and done, dash cams do encourage responsible driving behaviour. Whether or not South Africa is ready for the wholesale adoption of dash cams in the short-term insurance industry remains to be seen.
Welcome to world of 2099
The world of 2099 will be unrecognisable from the world of today, but it can be predicted, says one visionary. ARTHUR GOLDSTUCK met him in Singapore.
Futuristic structures tower over the landscape. Giant, alien-looking trees light up with dazzling colours amid the hundreds of plant species that grow up their trunks. Cosmetic stores sell their wares via public touch-screens, with products delivered instantly in drawers below the screens.
This is not a vision of the future. It is a sample of Singapore today. But it is also an inkling of the world we may all experience in the future.
Singapore was the venue, last week, of the World Cities Summit, where engineers, politicians, investors and visionaries rubbed shoulders as they talked about the strategies and policies that would enhance urban living in the future.
As part of the Summit, global payment technologies leader Mastercard hosted a small media briefing by one of Singapore’s leading thinkers about the future, Dr Damian Tan, managing director of Vickers Venture Partners. The company’s slogan “We invest in the extraordinary,” offers a small clue to Tan’s perspective.
“We look as far forward as 2099 because, as a venture capital firm, we invest in the long term,” he tells a group of journalists from Africa and the Middle East. “Companies explode in growth because there is value in the future. If there is no growth, they won’t explode.”
The big question that the Smart Cities Summit and Mastercard are trying to help answer is, what will cities look like in the year 2099? Tan can’t give an exact answer, but he offers a framework that helps one approach the question.
“If you want to look at 81 years into the future, and understand the change that will come, you need to double that amount and look into the past. That takes us to 1856. The difference between then and now is the difference you can expect between now and 2099.”
Click here or on the page link below to read on: Page 2: Soldiers and Health in 2099.
- Arthur Goldstuck is founder of World Wide Worx and editor-in-chief of Gadget.co.za. Follow him on Twitter on @art2gee and on YouTube
Street art goes electric
Kaspersky Lab and British street artist D*Face have unveiled the first-ever “art helmet” design at the Formula E finale for electric cars in New York.
The ‘Save The World’ helmets will be raced by DS Virgin Racing’s drivers, Sam Bird and Alex Lynn, as they traverse the New York street circuit during the final races of the Formula E season.
The announcement signals the first art helmet by a Formula E team, continuing the heritage of art in motorsport and the cybersecurity brand’s commitment to contemporary art, creativity and innovation. D*Face took inspiration from Kaspersky Lab’s tagline, “A Company To Save The World”, and hopes that his colourful work will inspire people to take positive action.
D*Face will announce his first-ever art car design with a custom-made livery for the DS Virgin Racing Team. Its design will be released at the “Art Goes Green” event after Saturday’s race. The helmets and art car are the latest installations in the “Save the World” collection, following a major permanent public mural that was installed in Brooklyn, New York, in May.
D*Face, whose real name is Dean Stockton, said: “It is exciting to work with Kaspersky Lab on this project and create art with a real message of hope for a better future. After all, this is our world and we need to look after it. It will take every one of us to make a real lasting, impactful change. I love the mentality of the DS Virgin Racing Team and that of Formula E by showcasing sport in a way that doesn’t harm the environment, but is still just as exhilarating and fun.
“It is time for us all to stand together and make a change… be that stopping data steals, climate change, plastic waste or using damaging fuels. I want everyone to make a pledge to do one thing that will help make a change.”
As a sponsor of DS Virgin Racing Team, Kaspersky Lab is responsible for protecting the team’s devices against cyber threats. The company sees the technical environment in the global sport of Formula E as the next frontier in furthering its research and development of new technologies to keep vehicles secure in the digital world.
Sylvain Filippi, Managing Director at DS Virgin Racing, said: “The whole team fully supports this great initiative and our thanks got to Kaspersky and D*Face for their collaboration. It’s an honour to have such an innovative artist bring his talents to bear in our team ahead of the season-finale; the car, drivers’ crash helmets and mural all look amazing.”
Aldo Fucelli Pessot del Bo, Head of Global Partnerships and Sponsorships at Kaspersky Lab added: “There is a need for innovation on a global scale, both in contemporary art and in the fast-growing sport of Formula E. Now, for the first time ever, Kaspersky Lab is proudly bringing together the two sectors in an effort to Save the World and unleash creativity, encourage freedom of expression and further innovation.”