Telematics is undergoing an increasing number of complaints over fairness 

The Financial Ombudsman Service has put telematics on its watchlist amid emerging customer concerns. 

The regulator believes telematics is one of the new and emerging challenges - and it will dedicate time and resources to addressing emerging concerns customers have over it. 

Chief executive Caroline Wayman said: ”Other cases raise new, and perhaps more complex questions of fairness – even though the products involved may be more familiar.

”Tens of millions of people in the UK have car insurance. However, disputes we’ve seen this year involving “black box” policies highlight how, while greater use of data can bring benefits, it doesn’t necessarily work out for everyone.”

Speaking in the FOS annual review, she added: ”The challenges raised by the trade-off between personalisation and privacy – and between convenience and security – are issues that cut across different financial products and services.

”They’re likely to become all the more pressing as the General Data Protection Regulation comes into force, and in light of wider concerns about privacy in a social media age.”

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The end of the black box in telematics 

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