With a worldwide need for cheaper car insurance premiums for drivers, and especially in light of the gender ruling by the European court, it appears that the large insurers in the Europe are paying close attention to insurance telematics and the scientific measurement of driving behaviour.
Earlier this week we found reference on the Road Safety Blog to Insurers [ such as Discovery Insure] and how they use telematics to calculate insurance premiums in a story titled “Insurance Telematics Delivers Scientific And Safer Driving!”
Insurers in Europe have also focused much more closely on insurance telematics and the process of using scientific data in differentiating between clients , their risk profiles and insurance premiums!
I would like to quote from a story by Callum Brodie which appeared in Postonline.co.uk.
“Executives from some of the UK’s biggest insurance firms will sit down next month to discuss the formulation of a common standard for issues surrounding telematics data ahead of an expected
The campaign, which is designed to harness a “sharing philosophy” throughout the industry, is being spearheaded by Wunelli chairman Sandy Dunn who told Post he is determined to standardise the collection, verification and security of telematics information ahead of the EU gender ruling in December.
It is estimated that the impact of the controversial ruling will result in the current figure of between 150 000 and 200 000 telematics policyholders will skyrocket to as many as five million within the next two years.
The predicted rise in demand for telematics policies, combined with the need for industry-wide cooperation on the matter, has led former BDML founder Dunn to invite a host of bosses from firms such as Allianz, Aviva, Groupama, Admiral, Sabre and Swinton to attend a ‘think tank’ at Loch Lomond Golf Club at the end of April.
He said: “Insurers have a small window of opportunity to agree a common data standard. As an industry we need to grasp the opportunity now, while telematics is still in its infancy in the UK, or we will find ourselves facing the same issues insurers faced, for example, in sharing ‘No Claims Discount’ information.
“We know there is an appetite to use telematics data for underwriting – Coverbox recently announced its plans to release a report to its insurer panel analysing 250 million miles of vehicle journeys to demonstrate the power of the information – but we must have certainty around the quality and security of data and agree common standards in the way data is collected to optimise the future benefits.”
While admitting that insurers are “notoriously reticent” on sharing company data, Dunn is calling for a change in attitude and has highlighted the success of the Insurance Fraud Bureau as an example of what can be achieved if firms work together to tackle a common problem.
He added: “The IFB should be exactly what we’re aiming for in terms of what it has achieved so far. The fact of the matter is that insurance companies are quite often reluctant to share data, but that needs to change.
“The ‘think tank’ will allow all parties to express their concerns. I don’t expect us to resolve the issue overnight, but I am hopeful of developing a set of guidelines towards the end of the year.”
Conclusion:
“The development of insurance telematics is regarded as the most fundamental innovation in the car insurance market…” says Anton Ossip, CEO Discovery Insure.
Technology previously used only in the fleet management and logistics industries is now more affordable and has been refined and enhanced to be used effectively in passenger vehicles to the benefit of vehicle owners, insurers and road safety. We will keep a close eye on developments in the insurance telematics industry and how insurers use technology, tracking technology and “black boxes” to calculate car insurance premiums!
Also view:
Insurance Telematics and Road Safety
Lessons from Formula 1 to benefit Car Insurance
Can Insurance Telematics fill the missing link for effective traffic enforcement?
Will Insurance Telematics settle the eternal debate of who is the best driver?