The latest developments across the P&C insurance industry regarding fraud, risk and compliance.
27 July 2016

How telematics reduces car insurance fraud

How-Telematics-Reduces-Car-Insurance-FraudAn important matter for insurance companies is to figure out how to make it more difficult for drivers to report a fraudulent claim and reward people for good (driving) behavior at the same time.

An increasing number of drivers is opting to install black box technology, known as telematics. Telematics in cars, or so called ‘pay-how-you-drive’ or ‘pay-as-you-drive’ insurance, uses real-time data to monitor driving behavior and calculate the premium accordingly. This requires a box with software and sensors to be installed in a person’s vehicle, and software to process the data. The sensor technology registers location, speed, acceleration and the G-forces that impact the car when swerving or turning corners. This provides the insurance company with insights such as braking and accelerating behavior of the insured and the actual and average driving speeds.

Detecting fraud and high risks

Insurers benefit as they are able to respond faster to customer claims by using the accident data provided by telematics-equipped vehicles. This results in increased customer satisfaction and retention. It also provides additional opportunities to reduce investigation costs and avoid fraud.

More importantly, based on the data provided by telematics-equipped vehicles, insurers are in a better position to assess risk. The data insights allow insurers to offer ‘pay-how-you-drive’ insurance models, rewarding customers in terms of lower premiums for better and safe driving. Improved insurance telematics, where data on a driver’s behavior is recorded on a second by second basis allows insurers to identify many more discrete behaviors. This makes insurers able to assess with far greater accuracy whether the facts presented to them are accurate or not. For example:

  • Was the driver exceeding the specific road’s speed limit?Connected cards : telematics in car insurance
  • Did the incident occur where it is claimed it did?
  • Was there sufficient braking?
  • Was the driving behavior of the entire journey uncharacteristic compared to recent history, suggesting either a different driver, or an impairment such as intoxication?

By analyzing the deeper data, insurers can immediately discredit claims that simply do not stack up.

A stunning example

Telematics insurance provider Insure the Box has used data collected from the telematics of cars in an insurance fraud case valued at £500,000. The case is one of the first of its kind. Insure the Box used the data collected from the black boxes installed in their policyholder’s cars to disprove 31 claims involving seven accidents over five months. The data was used in court to prove the actual location, time and severity of accidents. In one instance, a claim was made regarding an accident by two people who claimed they were strangers from one another. Black box data showed that one of the cars involved had been parked for 20 minutes just outside the address of a business owned by the other person, on the same day the accident occurred.

Drawback: manipulation of telematics data

How Telematics Reduces Car Insurance FraudOn the other hand, new forms of manipulation arise with this emerging technology. An important question that insurance companies should ask themselves is: are telematics boxes really reliable at this point? The Royal Dutch Touring Club ANWB states that insurers are getting prepared for monkey business. Driving behavior seems to be easily manipulated when it comes to the current telematics boxes. Several anonymous people stepped forward in discussions online, claiming that they found ways to manipulate the data by simply connecting external tools. However, the ANWB claims that this is easier said than done, since the company has hacked its own telematics system for testing purposes. Simulating driving data is possible, but sending this data to the database and make it look like actual data based on driving behavior is not possible. Various security protocols prevent simulation, according to the company.

Although telematics is emerging rapidly and is opening many doors, insurers must stay alert while this technology is still subject to development. At the end of the day, insurance telematics will be a way to reward behavior. It is up to the insurers to make sure that people get rewarded for good driving, not for manipulation.

Contact us

Cookie and Privacy Policy

1. Introduction

When you use this website, FRISS may collect information about your use of the website and the content offered. We believe it is important to handle your (personal) data with due care and confidentiality. When processing your personal data, we comply with the General Data Protection Regulation (Algemene Verordening Gegevensbescherming) and Article 11.7a of the Telecommunications Act (Telecommunicatiewet).

1.1.  Controller

The controller of the processing of personal data is:

FRISS Fraudebestrijding B.V.
Orteliuslaan 15
3528 BA

This processing of personal data is registered with the Dutch Data Protection Authority (Autoriteit Persoonsgegevens) in The Hague under reporting number m00004997.

1.2.  Purposes of data processing

There are several places on our website where you can fill in your (personal) data. We will explain the purposes of the various instances of data processing below.

Filling in the contact form or sending an e-mail

If you fill in the contact form on our website or send us an e-mail, we will only use the (personal) data you provide for the purpose or purposes for which you filled in the contact form or sent the e-mail.

Download form

If you download files on our website (such as e-books, whitepapers or reports), we will use the (personal) data you provide for one or more of the following purposes:

  • for the execution of an agreement, for example to send you the e-book, whitepaper or report you have chosen;
  • for the formation of an agreement, for example by contacting you by telephone or in writing.


If you fill in the application form for the newsletter on our website, your (personal) data will be used to send you the newsletter. Each newsletter contains a hyperlink at the bottom of the message that you can use to unsubscribe.

In addition to the personal data you provide to FRISS yourself, FRISS may collect, record and process additional (personal) data if you use the (web) services of FRISS. This concerns the following personal data:

  • data from the used equipment, such as a unique device ID, version of the operating system and settings of the device you use to access a service;
  • information about the use of a service, such as the time at which you use the service and the type of service that is used;
  • location details from your device or derived from your IP address that is provided to us when you use a particular service;
  • data available from external sources. We may receive information about you from public or commercially available sources.

1.3.  Provision of (personal) data to third parties

Your (personal) data will never be provided to third parties without your permission, unless we have an obligation to do so pursuant to legislation or regulations or you have given permission for this.

1.4.  Security of data

FRISS respects your privacy and ensures that personal data are handled confidentially and with the utmost care. All processed (personal) data is stored exclusively in secure databases. These databases are only accessible to employees of FRISS, to the extent that this access is required by virtue of their position. FRISS makes every effort to secure these systems against loss and/or any form of unlawful use or processing.

1.5.  Inspection, correction and deletion of data and the right to object

You can view your data that is processed by FRISS at any time and free of charge and, if you so wish, modify this data or have it deleted. You can also object to receiving information about products, services or content of FRISS. If you wish to make use of one of these options, you can send an e-mail to the Data Protection Officer of FRISS via privacy@friss.eu or write to the following address:

FRISS | fraud, risk & compliance
Attn. Data Protection Officer
Orteliuslaan 15
3528 BA Utrecht.

2. Cookies

When using this website, information about your use of these services and other websites may be collected by or on behalf of FRISS, for example by means of cookies.

A cookie is a small file that is sent along with pages of a website and stored by your browser on the hard disk of your computer. We use cookies to remember settings and preferences. You can disable these cookies via your browser.

2.1.  The purposes for which FRISS uses cookies

On our website we use cookies for the following purposes:

  • for statistical purposes, in order to analyse the use of FRISS websites. This allows us to keep track of the number of visitors and see which parts of our website are popular. We use Google Analytics in order to track and consult these statistics. On this website you can find explanations about all cookies that may be placed by Google;
  • for what is known as ‘targeting’ purposes, if you have used the download form. By targeting we mean building a profile of you based on your surfing behaviour on our website, after which we may contact you by telephone or e-mail based on the interests you have shown in order to offer you FRISS services that you may be interested in. We use HubSpot in order to track and consult these statistics. On this website you can find explanations about all cookies that may be placed by HubSpot;

3. Changes to this Cookie and Privacy Statement

FRISS may make changes to this Cookie and Privacy Statement. All modifications will be published on this page. We advise you to consult this Cookie and Privacy Statement regularly, so that you are always aware of the content of the current Cookie and Privacy Statement.