Quindell Portfolio has announced that CAA South Central Ontario has contracted with Quindell to provide their auto club members and insurance customers with new telematics technology and services.
Quindell has agreed a contract with CAA SCO on an exclusive basis for minimum period of 5 years in which the group will provide the technology for all of CAA SCO’s telematics initiatives to its membership base of over 1.9 million members. CAA SCO members are entitled to core services including 24/7 roadside services, battery service, emergency fuel and delivery, flat tyre service, locksmith, and extrication services, that will be enhanced by the introduction of telematics services. CAA SCO also provides auto insurance to over 90,000 auto owners in Ontario, and plans to utilize Quindell technology to offer CAA Insurance clients new insurance products.
Quindell is a global leader in the provision of full end-to-end telematics services, offering both usage-based insurance and behavioural-based insurance solutions. CAA SCO will be using a full suite of Quindell solutions including the provision of devices, network connectivity, product platform, systems integration, logistics, mobile applications, data analytics, call centre services and consumer-facing interaction. This broad offering will enable CAA SCO to launch their service bundle quickly, with a broad range of services. Quindell is able to implement all aspects of a telematics program within 8 weeks.
Over the next 5 years Quindell, the CAA SCO and other industry analysts generally believe that between 10% to 30% of all Canadian auto insurance policies will transition to being telematics-based, driven by initiatives such as this one promoted by the CAA SCO. At a 10% to 30% adoption rate, applied to insurance clients and to all CAA SCO members, technology revenue from this contract to Quindell could therefore potentially increase from CD26m to CD78m per annum. Applying a similar adoption rate for CAA SCO sister associations in Canada, representing 5.8 million Canadian members, would provide revenue potential of CD79m to CD237m per annum.
Rob Terry, founder and executive chairman of Quindell comments “The CAA South Central Ontario is the first major Automobile Association in Canada to contract with Quindell, and it represents a tremendous win for both our companies. This agreement once again validates Quindell's significant market leading model, which we believe will continue to positively disrupt the Canadian insurance market. It also confirms our belief that the insurance market in Canada is going to exceed all our previous plans for growth in the short to medium term. The contract, if take-up rates move into the 10% to 30% area as predicted by most major analysts, will generate revenues of between CD26m to CD78m per annum and extend our already strong telematics leadership in Canada. It also provides us an opportunity to develop and deliver state –of-the-art technology to the Canadian insurance market that has been proven to lower the cost of claims by promoting safe driving practices.”
Matthew Turrack, VP, Insurance for CAA SCO said "Our planned telematics offering will enhance CAA auto insurance offers, bring fairness to insurance, reward better driving behaviour, and lead to safer roads. We are excited to partner with Quindell, a market leader in telematics, who have a long established track record of delivering this technology."
Cindy Hillaby, VP, Membership and Automotive Services at CAA SCO added "Our promise to our members is to provide them with roadside safety, peace of mind and value for their membership. Telematics provides us with new opportunities to use technology to deliver on that promise more effectively while providing members with an extra level of care and convenience."
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