Driving behaviour tracking devices can help with motor pricing
AA and Admiral are both working on plans to bring in telematics for young drivers, as insurers rush to find solutions after the recent European Court of Justice gender ruling.
The news comes as Co-Op Insurance became the latest insurer to join the telematics revolution, announcing a partnership with providers Wunelli and Capita.
An AA spokesman confirmed its plans for telematics – in-car systems that track driver behaviour to help insurers set pricing.
He said underwriting young drivers was complex enough without the ECJ ban on gender discrimination. Women, historically more risk-averse than men, were becoming more aggressive, reflected in a 70.8% premium rise last year for women aged 17 to 22, he said.
An Admiral spokesman said: “We have been trialling technologies and are keeping our options open.”
Aviva, which dropped out of the telematics market in 2008, could look again at it this year, according to UK chief executive Mark Hodges.
RSA is well-placed to expand its telematics commitment having signed a deal with Welsh broker Motaquote in November 2008 to offer young drivers the i-kube device. AXA, Direct Line and Zurich have yet to show their hand on telematics.