Octo Telematics marks a new milestone as popularity of telematics insurance policies soars
The Octo Telematics platform now connects five million cars worldwide, a 25% growth milestone achieved in just twelve months. In overall market terms, Octo currently commands 39% of the active usage-based insurance policy market.
To celebrate this new milestone, Octo fielded connected cars in three major cities around the world - London, Rome and Boston – to showcase the collection and analysis of telematics data on acceleration, braking, negotiating turns and a wide range of other driving actions and parameters that reiterate the importance of safe driving, as well as the benefits of telematics for improving road safety and simultaneously allowing significant savings.
Insurance Telematics Market
The global telematics industry is enjoying unprecedented growth. The Ptolemus Usage-Based Insurance Global Report 2016 estimates that ca. 12 million telematics insurance policies have been undersigned worldwide to date and predicts this figure will soar to 100 million policies by 2020. Moreover, the report forecasts that nearly 50% of the world’s vehicles will be insured with telematics-based policies by 2030.
Indeed, with rising insurance premiums and added costs, experts indicate that safe drivers can save up to 30% on their policies with insurance telematics. And Octo has been at the forefront of this industry since its development. The wide adoption of telematics insurance is a clear reflection of the increased understanding, adoption and appreciation of usage-based insurance by insurers and consumers alike.
Fabio Sbianchi, CEO, Octo Telematics, emphasized how “consumers are becoming more aware of the value of paying their own bill, rather than being charged premiums based on categories such as age, location or assumed mileage. Insurers are also looking for further ways to work more closely with their customers and increase loyalty. These conditions, added to the rapid rise of insurance premiums, are perfectly suited to telematics and Octo’s great growth over the last year reflects these strong conditions.”
Moreover, telematics is not only the driving force behind connecting today’s vehicles both amongst themselves and to the greater Internet of Things, but it also fundamental to the on-going development of driverless cars. It is the transmission and reception of the very same data that is used in UBI policies that will power autonomous, self-driving vehicles, fuel their artificial intelligence systems and keep them plugged into the safer and smarter cities of the future. And Octo Telematics is ready.
Andrew Lee, Head of Market Intelligence and Analysis, Octo Telematics points out that “while true driverless cars may be some way off, the technology for them is available now. Modern cars are being manufactured with a high degree of connectivity that provides an increasing number of financial benefits to motorists. We are constantly looking at developing our telematics offering, including not only increased device and sensor sophistication but also how we analyse and use the data to transform the transport experience.”