Capita to support Co-op on telematics launch

Capita Insurance Distribution has agreed a four-year contract to administer a new young driver motor insurance product being launched by The Co-operative Insurance.

The product is aimed exclusively at the young driver market – male and female drivers aged between 17 and 24.

Policyholders, will have a ‘smart box’ installed in their car that provides real time information about how and when they drive.

Premiums will also be based on actual risk posed by an individual’s driving rather than age and gender.

Capita Insurance Distribution will provide sales support, policy administration and processing services to The Co-operative Insurance’s motor insurance customers.

Wunelli will provide the ‘smart box’ and telematics data that enable a driver’s speed, acceleration, braking and the time of day that they drive to be recorded and used to drive his or her premiums down – or up.

Mark Townsend, managing director of Capita Insurance Distribution, said: “At a time when the cost of insurance premiums are high, and in the light of the recent European Court opinion on using gender to define risk, it is particularly gratifying to be working with The Co-operative Insurance in the launch of an innovative technology designed to reduce costs for young people, and encourage responsible driving behaviours.

"This deal enables us to combine our experience in telematics with our core skills of cost effective, efficient and customer focused policy administration.”

Grant Mitchell, head of motor insurance at The Co-operative Insurance said: “The new telematics technology will enable us to gain a genuine insight into how a young driver behaves behind the wheel.

"We believe that young drivers risk becoming an ‘uninsurable generation’ and hope that our product will pave the way for the rest of the industry to give them access to fairly priced motor insurance premiums. We look forward to working with Capita Insurance Distribution to help us deliver this next step in telematics technology to the market place.”

Penny Searles, commercial director of Wunelli, said: "This is a challenging time for Insurers and we are proud and privileged to be working with The Co-operative Insurance on such an innovative product launch that will not only see a new approach to underwriting but will see insurers actively helping to improve driving behaviours to avoid death and injury.