UK telematics insurance sales increased five fold in the last two years

Research from the British Insurance Brokers’ Association (BIBA) shows that ‘black box’ motor insurance sales have increased five fold in the last two years, and are set to snowball to around 500,000 in the next two years. BIBA says that the telematics technology can offer savings on motor insurance of around 2530 per cent and some young drivers can save up to US$1,554.
July 16, 2012 Read time: 1 min
Research from the 6204 British Insurance Brokers’ Association (BIBA) shows that ‘black box’ motor insurance sales have increased five fold in the last two years, and are set to snowball to around 500,000 in the next two years.

BIBA says that the telematics technology can offer savings on motor insurance of around 2530 per cent and some young drivers can save up to US$1,554.

The technology works by recording journeys or driving behaviour so that premiums can be accurately applied to a driver’s exact risk profile.  

“The dramatic increase in black box technology follows the rising cost of premiums for young drivers, the decreasing cost of technology, and new product availability from insurance brokers,” says Leighann Forsyth, BIBA’s head of communications.

BIBA also says that women, who are likely to see an increase in motor premiums later this year due to the European gender rating ban, could benefit from reduced premiums from telematics.

BIBA’s research can be downloaded from this link.
Location Based Systems

For more information on companies in this article

Related Content

  • User-based insurance joins the battle for big data
    November 10, 2015
    User-based insurance is blazing a trail others would like to follow and is also discovering the challenges. The ITS sector needs to keep a very careful eye on the automotive industry: “There’s a war going on in the connected car space creating richer datasets than we ever imagined possible” says Paul Stacy, research and development director of Wunelli, part of the LexisNexis group. The car makers have gone way beyond infotainment, unlocking huge amounts of data in the process … facts and figures which the i
    Read More
  • Safe-driver training reduces costs, increases safety
    February 3, 2012
    Hermes, one of Europe's leading home delivery specialists, and part of the Otto group's European logistics division, estimates that introducing a range of safe-driving measures in its UK operations have contributed to a US$1.5 million cost saving to the business in the 12 months to April 2010.
    Read More
  • When caring about sharing is good business for US automakers
    October 28, 2015
    Although car-sharing and ride-sharing could drastically reduce car sales, David Crawford finds some US automakers are keen to participate in the sharing economy. Growing consumer interest in car- and ride-sharing, as opposed to outright ownership, and ride-sharer Uber’s recently stated intention to make its brand competitive with ownership on cost, are making the major US automotive manufacturers think seriously about their future sales prospects. Some have already begun exploring ways of entering the field
    Read More
  • New analysis finds speed cameras may create bad driving behaviour
    October 28, 2015
    Using more than one billion miles of driving behaviour data, collected over three years (2011-2014) and including 8,809 separate journeys in 5,353 vehicles, Wunelli, a LexisNexis company, has revealed the most frequent braking black spots across the UK created by speed cameras, based on motorists braking excessively just before speed cameras to avoid being caught. Eighty per cent of all the UK speed cameras investigated had hard braking activity, with braking increasing six fold on average at these loca
    Read More

Highlighted Content