Telematics Is Evolving Into Behavioural Risk Analytics

Telematics – or black boxes – have been around for decades now and initially they simply measured location, speed, and perhaps sudden braking incidents or impacts with another object. But technology is like Meghan Markle’s legal team, it never sleeps and so modern telematics is actually about feeding data into an eco-system that uses AI to makes sense of it. Looking for risky behavioural patterns is actually more important than whether a young driver is driving home from a late shift at Burger King. Think about it. So pricing risk is all about understanding the nuances within data streams.

Here’s some news from Quotezone;

Automotive telematics have been on the tip of our tongue for the last 20 years, but the recent pandemic has highlighted our desire for all things digital and the need to create savings. Young drivers in particular, can save up to 60% at renewal by installing a telematics product in their car, which reports the quality of their driving back to the insurance provider via GPS.  In fact, it is predicted 88% of new cars will carry integrated telematics within five years.

Now joining one of the UK’s early pioneers in comparison services, Quotezone.co.uk, is veteran telematics car insurance provider, insurethebox. Established in 2010, the company has accumulated over 5.7 billion miles of driving data over the past decade, with no signs of slowing down.

Using this data, insurethebox proactively communicates with its policyholders who display risky driving behaviours, providing them with the information they need to improve their driving. Amongst its communications is their award-winning Speed Reduction Programme,  which has seen upwards of 86,000 drivers reduce their speed by 22%, leading to a 6% reduction in accident frequency amongst its customers – helping to prevent an estimated 1,191 accidents and a further 50 serious injuries in the past 5 years.

Warren Hetz, UK CEO of Aioi Nissay Dowa Europe, parent company of insurethebox comments: “Our telematics products have long-provided an opportunity for drivers to improve their driving behaviour and earn rewards by providing a level of insight unavailable with traditional insurance. As a business, we observe the benefits of safer driving by our customers on a daily basis, and through this partnership with one of the UK’s pioneers in the insurance comparison space, we endeavour to expand our reach and provide these benefits to more drivers, of all ages.”

A recent report linked further development in connected car technologies, based on current market trends, with an estimated 72,000 jobs in the industry and £2.7bn gross value added to the economy by 2035.

Greg Wilson, Founder of comparison sites CompareNI.com and Quotezone.co.uk comments:  “There is massive potential in the telematics industry and not just to create jobs and add value to the economy – the information captured can actually improve road safety and save the consumer money.

“Young driver premiums are often amongst the most expensive given their inexperience and therefore lack of data for insurers to calculate risk.  With a telematics product, these young drivers can quickly demonstrate their road skills, with the safer drivers gaining reduced premiums.

“insurethebox is a pioneer in the telematics field, an exciting addition to our car insurance panel.”

About alastair walker 7450 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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