Telematics is transforming auto insurance by enabling better risk assessment, operational efficiency, and personalized offerings, though adoption differs across sectors. Commercial auto insurers have embraced the technology, while personal auto lags due to privacy concerns. Key challenges include the absence of standardized data formats, high implementation costs, and regulatory complexity. Unlike healthcare’s HL7 standard, the insurance industry lacks unified telematics protocols. Although the global telematics market is set to grow, broader adoption in personal auto will require addressing privacy, cost, and data management barriers.

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