Guidelines are expected to increase growth of telematics policies in the UK
Biba and Thatcham are working together to create data guidelines for telematics devices and connected cars.
The guidelines will highlight the key data streams a device should capture to enable insurers to capitalise on the technology when designing products.
Thatcham chief technical officer Andrew Miller said creating a standard would be vital in making sure the industry develops in a coherent way.
“We are very worried about the state of the market,” he said. “That’s why we are building up guidelines that say, of all the capabilities available, what insurers are most interested in are these sets of data. We can then develop some convergence [of technology], which can be tried and tested.”
The guidelines are also expected to help grow the number of telematics policies being sold in the UK by allowing greater mobility for policyholders when it comes to switching policies at renewal.
Biba executive director Graeme Trudgill said: “There needs to be open competition and the same data guidelines, functionality and technology standards that Thatcham are proposing.
“The whole point [of these standards] is so that the consumer has choice. If they are locked into a policy they don’t have that choice and access to alternative products. Motor insurance is so competitive with so many products, and they should have access to that.”
While the data standard is currently in the early stages of development, Miller said he was hopeful of opening a consultation on the guidelines in the second quarter of 2015.