Telematics is a general term for remote message processing and communication between terminals by means of telecommunication networks. Telematics is a combination of computer information processing and communication, which can be applied to office automation and data communication of individuals. In the 1980s, telematics opened up a variety of non-voice services besides the traditional telegraph, telephone and data communication. Speaking from the narrow sense, it mainly includes telefax, teletex, visual text, telewriting and so on.
Telematics is characterized by the processing of information, including text and graphics. It can not only transmit information, but also process information. Under the promotion of the rapid development of the digital telephone network and the public data network, telematics set up their own non-voice service network with multiple networks existed together.
consists of a series of hardware and software components, which are integrated together to transmit the usage information of vehicle to the relevant concerned parties. For the insurance industry, it actually requires a system by which can achieve the communication with the mounted system of vehicle and the proofreading of the information. It can also transmit the insurance company or other organizations through the Global Positioning System (GPS).
With the preliminary implementation of the technology at the beginning of this century, there was a revival of the insurance industry's interest in telematics, especially the premiums and the driving behavior of applicant rather than just the policies that are related to the driving mileage.
These products are the extension of UBI products developed by the telematics system of the insurance industry at the early stage. Unlike the earlier UBI insurance products, the telematics system device is not only used to record the driving distance of the insured vehicle, but also used to convey to the insurance company more detailed information of the driving behavior about the driver, including the time, place, distance and speed of the vehicle in the day.