CAMBRIDGE, UK –– A survey carried out by Redtail Telematics, the long-established supplier of built-in telematics options worldwide for the automotive, insurance coverage and fleet sectors, and YouGov reveals that insurers are lacking alternatives to win new telematics motor insurance coverage prospects. The intransigence of insurers to advertise telematics is at odds with shopper demand as the recognition of telematics primarily based insurance coverage continues to rise as customers recognise the financial savings that may be achieved by switching to a telematics-supported motor insurance coverage coverage.
• Solely 4% of respondents have obtained any communication from their insurer to debate adopting a telematics primarily based insurance coverage coverage
• 76% of respondents have by no means had their insurer contact them relating to the advantages of a telematics-based motor insurance coverage product
• A report by Examine the Market discovered telematics quotes are cheaper than normal automotive insurance coverage for 78% of drivers aged between 17 and 20 and 69% of these aged 21-24
• On common, these drivers who switched to By Miles had been capable of save round £300 a 12 months
Redtail Telematics commissioned the analysis in partnership with YouGov, whereby 2,000 UK drivers had been surveyed relating to their attitudes to utilizing telematics-based insurance coverage insurance policies.
With telematics delivering motorists a wealth of advantages starting from a discount within the worth of motor insurance coverage to improved driver security and decrease environmental affect, the analysis highlights that although there are over a million registered telematics insurance policies within the UK based on BIBA, (British Insurers Brokers Affiliation), insurers have to take steps to each utilise the massive quantities of knowledge and enhance communication to advertise the numerous advantages to customers of utilizing telematics.
The problem is that, whereas the vast majority of insurers now have some type of telematics proposition, whether or not via a dealer partnership or as a definite a part of their in-house capabilities, it’s nonetheless seen as a distinct segment a part of their enterprise and the profit is proscribed to how telematics knowledge is used to charge for threat, and the way it may be used to higher inform and incentivise drivers.
In January, 2022, new guidelines had been launched to stop insurers quoting the next worth to current prospects than they might a brand new buyer. The observe, generally known as ‘worth strolling’, was outlawed in an try to make insurance coverage pricing fairer and extra clear. This is a chance for insurers to supply their prospects telematics insurance policies that may not solely cut back premiums, but in addition ship a wealth of advantages such together with improved driver security and superior FNOL (first notification of loss).
James Blackham, CEO at By Miles, mentioned: “The price of dwelling disaster is baring its tooth for drivers – with gas, repairs and the value of vehicles on the rise – and many people are having to make modifications.”
“Half of street customers have lowered their mileage via the price of dwelling disaster, and should now be higher off with pay-by-mile insurance coverage. On common, these drivers who switched to By Miles had been capable of save round £300 a 12 months – which is able to assist with bills elsewhere,” James Blackham concludes.
Commenting on the Redtail Telematics/YouGov analysis, Redtail Telematics CEO, Dr Colin Smithers mentioned: “The advantages of utilizing telematics for motor insurance coverage functions are extensively documented, nonetheless our analysis reveals that insurers have to proceed participating ever extra deeply with drivers to higher spotlight the advantages and actual financial savings that may be generated and to make sure their buy-in. Not solely can security be improved, and premiums subsequently lowered, however the lengthy tail of misplaced no-claims reductions will also be prevented. The richness and relevance of telematics knowledge should be ever extra worthwhile for these insurers dedicated to honest pricing, improved street security and responding to environmental issues. Redtail is keen about our knowledge informing insurer knowledge in an effort to make a discernible affect on all three.”