Swinton looking at 'pay as you drive' boxes

Swinton is examining ‘pay as you drive’ telematics technology, Peter Halpin has told InsuranceTimes.co.uk.

The company’s chief executive said the cost of installing telematics boxes had dropped to under £100, which would make it make it potentially much more cost effective to offer than when it was trialled by Aviva and RSA at the end of the last decade.

Halpin calculated that the technology could lead to reductions of 15-20% in individual drivers’ premiums.

“We are looking at it. It will be interesting to see how it develops. The data it collects is amazing”, he said, adding that there could be opportunities for a broker like Swinton to work in partnership with an IT provider or an insurer to offer the technology to customers.

Swinton’s interest reflects a wider upsurge in appetite for telematics, which has been spurred by the European Court of Justice’s recent ruling as a result of which insurers will not be allowed to use gender as a risk pricing factor from December 2012.