AA reveals details of telematics scheme

AA Insurance has revealed the details of its telematics scheme for motor customers.

The scheme will be underwritten by Groupama, Markerstudy and Sabre. The telematics ‘black boxes’ will be provided by Wunelli.

“I’d like to get another two or three insurers on the panel,” AA director Simon Douglas told Insurance Times. The AA is talking to other interested insurers at the moment, he added.

The scheme would go live in the first quarter of 2012. It will be available through a price comparison website, which the AA is yet to reveal.

“We are looking to get the product onto one aggregator, which I think will be sufficient,” Douglas said.

The customer would buy an AA telematics policy online, and would pick a date for Wunelli to install the box within 28 days of buying the policy.

AA Insurance and Admiral confirmed their interest in the technology earlier this year.

The box will monitor and record driving speed, braking intensity, cornering, location and time.

Once the box is fitted, this information will be sent to insurers and will be available online to customers within two to three days.

Within three months of selling a policy the insurers would have enough information to be able to adjust the premium price, Douglas said.

The AA will get a commission from insurers for every policy sold through the scheme.

The AA wants to restrict the number of telematics policies sold to a maximum of 30,000 next year, said Douglas.

One reason for this is that the AA wants to start small and then build up its telematics market share as the technology gets wider acceptance, Douglas said.

“Telematics is definitely in its infancy just now, and our view is that it will be a growing market, but it isn’t going to be a significant part of the motor market in the next three to five years, we want to get in there reasonably early,” he said.

Another reason is cost. The total cost of the device to the AA over three years was around £250 to £300, Douglas said.

The AA would look to sell the product to pupils in its driving schools, he said.

The news comes as BMW talks to telematics providers about installing their technology in its new cars.