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.”
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