General Insurance Article - Insurers should promote the benefits of telematics data


A survey conducted by Redtail Telematics, the long-established provider of integrated telematics solutions worldwide for the automotive, insurance and fleet sectors, and YouGov reveals that insurers are missing opportunities to win new telematics motor insurance customers. Their conservative use of the data available from telematics is hampering use of the technology and therefore fuelling consumer misconceptions of the possible benefits and savings.

 Redtail Telematics commissioned the research in partnership with YouGov, whereby 1,500 UK drivers were surveyed regarding their attitudes to using telematics-based insurance policies. With telematics delivering motorists a wealth of benefits ranging from a reduction in the price of motor insurance to improved driver safety and lower environmental impact, the research highlights that even though there are over one million registered telematics policies in the UK according to BIBA, (British Insurers Brokers Association), insurers need to take steps to both utilise the huge amounts of data and improve communication to promote the significant benefits to consumers of using telematics.
 
 The issue is that, while the majority of insurers now have some form of telematics proposition, whether through a broker partnership or as a distinct part of their in-house capabilities, it is still seen as a niche part of their business and the benefit is limited to how telematics data is used to rate for risk, and how it can be used to better inform and incentivise drivers.
 
 The insurance sector has work to do in convincing UK drivers of the benefits delivered by telematics. Nearly 30% of those surveyed by Redtail/YouGov stated that they could think of no reasons to change from traditional motor insurance policies, citing the cost of installing the telematics device as a factor (42%), despite this not being borne by the policy holder, , while 38% of respondents believed that using telematics could potentially increase the cost of motor insurance.
 
 In addition:
 
 • 37% of respondents cited their negative perception of telematics being because it ‘Tracks all your car movements’
 
 • 42% did not want to abide by ‘curfews’ for night-time driving that are operated by some insurers
 
 • 55% were unaware that there were any potential financial savings
 
 Commenting on the Redtail Telematics/YouGov research, Redtail Telematics CEO, Dr Colin Smithers said: “The benefits of using telematics for motor insurance purposes are widely documented, however our research reveals that insurers need to continue engaging ever more deeply with drivers to better highlight the benefits and real savings that can be generated and to ensure their buy-in. Not only can safety be improved, and premiums therefore lowered, but the long tail of lost no-claims discounts can also be avoided. The richness and relevance of telematics data must be ever more valuable for those insurers committed to fair pricing, improved road safety and responding to environmental concerns. Redtail is passionate about our data informing insurer data in order to make a discernible impact on all three.”
  

Back to Index


Similar News to this Story

Banks can offer more than mobile phone insurance
Banks could be missing an opportunity to provide customers with additional mobile phone insurance services, according to research from Assurant.
Peoples protection in the new world of work
Working people around the world are worried that they will be poorer than expected when they retire. The young are as anxious about their financial fu
Doubt that main political parties will reform social care
Research for Just Group’s Care Report 2019, the seventh in a series that examines the knowledge and attitudes of over-45s toward adult social care ref

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.