AXA UK is developing its own version of the vehicle tracking technology shortly to be piloted by Norwich Union (NU).
The insurer is researching how 'black box' technology that transmits data on a car's performance via the mobile phone network can be used to refine premium costs.
The system has already been successfully introduced by AXA Ireland where it is used by 1,500 policyholders to control spiralling insurance costs for young motorists. By tracking speeds, mileage and driving patterns the technology has resulted in significant savings within the high costs sector.
One of the problems of the system is the high cost of installing and running it relative to any savings that can be made. In Ireland high average motor premiums make the system more viable.
NU is to pilot its version of the technology early next year. Information from 5,000 policyholders will be collated over 18 months to produce the data needed to launch the UK's first vehicle-tracking insurance policy.
