First mass market telematics motor policy launched

The first smartphone based telematics private motor insurance policy has been released by insurance technology specialist SSP and telematics experts Wunelli.

SoteriaDrive will be available to over 1,000 high street brokers through existing SSP systems. SSP Pure Broking and Keychoice managing director Jonathan Davey said the move would give smaller brokers access to the telematics market.

Davey said: “Historically telematics has been the domain of very large brokers and insurers who have had the money to invest in these types of initiatives. The smaller high street brokers haven’t had the buying power, investment capability or technology understanding and that has kept them out of this space. This is an inclusive proposition.”

 The new policies will allow individuals with cheaper premiums to benefit from telematics insurance coverage as it reduces the cost of acquiring data and can therefore be used for smaller premiums. SoteriaDrive uses a smartphone app, available for iPhones and Android, instead of a black box that must be installed in the car.

Wunelli managing director Penny Searles said the new offering from the companies had gained the trust of underwriters through the ways it can reduce risk and tackle fraud without the need for a black box.

Searles said: “Our apps are now 99% accurate compared to black boxes. That’s because after 200 miles we can develop a ‘driver footprint’ based on a combination of origins, destinations and driving styles, validated and verified through GPS readings and mileage analysis to ensure the data is legitimate.

“It would be impossible to pick up every journey but it’s enough to give underwriters reassurance. If the premium is £350-£400 then as an industry we are saying that’s a reasonable risk so the likelihood of a reasonable risk taking an app to commit fraud is a lot lower than a high premium risk.”

The product has also received backing from BIBA. Head of corporate affairs Graeme Trudgill said: “This is a significant breakthrough for brokers, giving them access to a product that specifically addresses their needs and the needs of their clients as well as an opportunity to engage with policyholders on an on-going basis.

“We have been campaigning for this option to be made available for some time.  There is much potential for telematics based insurance policies within high street brokers and SoteriaDrive from SSP and Wunelli will help them realise that potential.”

Davey said that the decision to launch the product was based on extensive research and was not “speculative” but intended to meet the demands of brokers who had already expressed enthusiasm for the product.

SSP and Wunelli were unable to confirm which insurers had agreed to underwrite the policies, but said they were expecting to make announcements soon regarding five insurers joining the venture on an initially exclusive basis.