GlobalData Sees Telematics Demand Rising

The latest from GlobalData, who see demand for black box style telematics rising. IE thinks that app-based, driving behaviour policies will prove more popular long term for all age groups and there will a gradual decline in driving per se by the under 30s as globalist policies of branding car use some sort of environmental crime become more common across mainstream media, education institutions and the public sector. But anyway, here’s the news;

While young UK drivers have expressed various concerns around the ‘Black Box’, this has not stopped demand rising, according to GlobalData. A survey by the leading data and analytics company has revealed that 17.3% of under 30s highlighted privacy as an issue, while 27.3% felt uncomfortable with the idea that someone was grading their driving ability, and 31% were put off by the idea that the box had a direct line with their insurer. Despite all of these concerns, uptake of telematic devices among under 30s rose by 28.6% between 2020 and 2021.

Benjamin Hatton, Insurance Analyst at GlobalData, comments: “Given younger consumers’ considerable online presence, it is perhaps surprising that they find the idea of data sharing and privacy to be such sticking points when it comes to telematics. Advertising the potential financial savings black boxes and usage-based products can provide may go some way to addressing these concerns. However, there also needs to be a reassurance that these services are intended to help young drivers, rather than acting as a Big Brother that’s constantly watching for errors.

“Telematics can unlock discounts for good drivers, which could help young drivers who are subject to considerably greater average premiums for their car insurance. This will become especially important as the cost-of-living crisis continues.”

As the UK emerges from the COVID-19 pandemic, many consumers have considered how their driving habits and frequencies have changed.

Hatton continues: “GlobalData’s survey indicates that 28.3% of under 30s believe they will be driving fewer miles annually than before the pandemic. Usage-based policies are a great way for low-milage drivers to keep their premiums low, with a growing number of young consumers looking to make use of these policies.”

GlobalData forecasts a growing use of mobile devices, in lieu of black boxes, as providers increasingly enhance their digital capabilities.

Hatton adds: “The rollout of 5G networks across the UK will further facilitate mobile telematics. Moving to mobile will also remove installation costs, meaning the services are both more accessible and more affordable.”

About alastair walker 11342 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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