Over 2,000 UK drivers were surveyed regarding their attitudes to using telematics-based insurance policies. With over one-million UK motorists currently using telematics-based insurance policies for their motor insurance (BIBA), the research reveals that insurers are not capitalising on the increased popularity of motor insurance supported by telematics. A staggering 81% of those surveyed reported that they have not had any form of communication from their insurance provider regarding a telematics/insurance product and the range of benefits that the technology delivers.
The insurance sector has work to do in convincing UK drivers of the benefits delivered by telematics. Currently, only two per cent of those surveyed stated that they have a telematics-based motor insurance policy.
Redtail Telematics CEO, Dr Colin Smithers said: “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 safe driving”.
Dr Smithers concludes: “The scope for benefiting from using telematics for motor insurance is far wider than this, including efficiency and clarity in the claims room, and the priceless opportunity to defend innocent drivers in the event of a claim extending even into the courtroom. 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”.
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