Interest in telematics-based insurance is taking off, with more companies planning to launch products and even PM David Cameron giving the concept a boost
In January, Insurance Times published a round-up of all the telematics-based insurance products on the market.
Since then the telematics market has already seen new entrants, fresh ideas and strong interest from the prime minister, so we thought it was time for another update.
Esure and Sheilas’ Wheels: join the club
Esure Broker and Sheilas’ Wheels Broker are considering introducing telematics, Insurance Times understands.
The brands were set up in November to catch customers that fall outside the underwriting standards of Esure and Sheilas’ Wheels.
Esure founder and chairman Peter Wood said that while he was unsure of the future of telematics, he wanted to have a proposition ready in case the market took off.
Fair Pay: Markerstudy and Equity Red Star backing
Another fresh face is Motaquote-owned telematics company Fair Pay Insurance, which was launched this month to target older drivers.
The broker has signed up satnav provider TomTom to target up to £10m of premium from experienced drivers in its first year. Markerstudy and Equity Red Star will underwrite the project.
Fair Pay managing director Nigel Lombard said Fair Pay would rely on the experience of sister company Ikube, a telematics firm for young drivers set up in 2006.
Swinton: Online feedback
Swinton has launched a telematics pilot scheme called Drive it Down, underwritten by Provident. The telematics black boxes will be made by Wunelli.
Swinton will install the equipment into policyholders’ cars for free and customers will be able to get online feedback on their driving behaviour. The broker will give customers a monthly score that will determine their premium price, which Swinton said could be up to 50% less than previously.
Drive it Down customers can also have their car tracked if it is stolen and will also get a courtesy car.
CHANGES AT EXISTING FIRMS
Telematics was spotlighted by prime minister David Cameron at his recent meeting with insurance bosses to tackle compensation culture. Cameron showed a keen interest in telematics because it can cut premiums for young drivers.
Gocompare: site planned
Elsewhere, Gocompare and Wunelli are planning to launch a price comparison service for telematics insurance policies. “The telematics industry will only increase in importance this year, for both the insurance industry and the consumer alike, so we are keen to introduce a service that will enable motorists to compare these policies at a glance,” said a Gocompare spokesman. The company would not reveal further details.
Budget: new rating and charging
Wunelli has sold long-standing telematics insurer Coverbox to a group of investors including Budget Insurance co-founder Johan van de Merwe, who will be managing director. Private equity investors and Van de Merwe plan to roll out a new rating and charging process, as well as signing up more users.
Managing director Van der Merwe said: “As attitudes change from resistance to change to demand for change, the opportunity for the insurance industry to drive efficiencies, gain trust and develop new products grows.”
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