Martin Williams, Octo UK: ‘Insurance telematics is ripe for the mass market’.
The falling cost of digital devices is uncovering new opportunities for insurance telematics to attract a vaster segment than its traditional core segment, composed mostly of young tech-savvy drivers. Indeed, just last week, Octo CMO Jonathan Hewett, speaking at the Insurance Telematics USA Conference, declared that insurance companies must make the most of the current opportunity to drive usage-based insurance beyond its traditional core segment and towards true mass-market uptake.
“The decreasing cost of devices and fees is continuing to drive the cost of insurance premiums down,” explains Martin Williams, Managing Director, Octo Telematics UK. “Young drivers clearly face higher premiums and this makes it more affordable to include and operate a telematics device; however, as costs continue to decrease, an entire new range of segments is opening up to insurance telematics.”
Indeed, data released by the British Insurance Brokers’ Association (BIBA) at the beginning of the year (2014) indicates that sales of telematics insurance policies have increased by 60% over the past eighteen months with nearly 300,000 policies sold in in the United Kingdom in 2013.
Thanks to its partnership with Insurethebox, the United Kingdom’s leading telematics insurance company – with which Octo has recently extended its existing partnership – over 300,000 Octo Black Boxes have been installed in UK policyholder vehicles since 2010.
Insurethebox focuses on the quality of back-end data for the analysis of crash and claims services. In fact, although it currently does not include a mobile app, the Octo device comes equipped with an external accelerometer, which provides far better data quality in these contexts,” emphasises Mr Williams.
The value added services that are often bundled with insurance telematics will not only provide improved safety and security services for policyholders, but they also will mean lower custom-tailored premiums. Moreover, this also means that drivers will have the opportunity to reap all of the advantages associated with the Internet of Things, connect with the broader mobile ecosystem and converge with the now ubiquitous digital lifestyle.
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