General Insurance Article - Research shows data privacy concerns for telematics policies


A survey of 2,000 UK motorists conducted by YouGov and commissioned by Redtail Telematics, the long-established provider of integrated telematics solutions worldwide for the insurance, automotive and fleet sectors reveal that over 50% of UK motorists’ stated that they were not comfortable with an insurer obtaining personal information from a telematics device, which is used to calculate an insurance premium based on the driver behaviour of the customer.

 In a market of expensive motor premiums, many UK drivers have turned to telematics, agreeing to have their driver behaviour monitored in exchange for a better deal, but as the YouGov/Redtail Telematics report has highlighted, insurance companies need to do a better job reassuring their customers about how exactly they use, don’t use and take care of their telematics data.
 
 Being open with a customer regarding the use of their data is key to building trust. ByMiles, a Redtail Telematics customer that sells motor insurance based on an individual’s mileage driven per month has a data privacy policy in strict accordance with the ISO 27001 standard for data security, in addition to adhering to GDPR.
 
 Commenting on the Redtail research, James Blackman, CEO, ByMiles comments: “We ensure that our customers’ data is stored securely, processed in a fair and transparent manner, and accessible to them whenever requested. To ensure that we continually improve as a company, our Business Management System is regularly reviewed by myself and our management team to ensure that it remains appropriate and suitable for our business”.
 
 Since the introduction of GDPR (General Data Protection Regulation), insurers must take care to collect only the data that they need, and with explicit customer consent or risk a potential maximum fine of up to €20 million (£17.4 million), or 4% of annual turnover for non-compliance. Under the regulation, the personalised experience that insurers want to give their policyholders must be completely GDPR compliant, and each new product or service meeting GDPR guidelines right from the early stages of development.
 
 Dr Colin Smithers, Redtail Telematics CEO comments: “Telematics data plays a vital role in providing cheaper car insurance and a range of other customer benefits, but it must be managed properly and with complete transparency for the customer. Insurers must obtain the consent of all named drivers on a telematics policy before they can collect personal telematics data about those individuals. Only this way can the full potential of telematics in UBI be achieved, i.e. lower premiums through higher efficiency, driver coaching for greater safety, faster and more accurate claims processing and fraud prevention”.
  

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