Large majority of policyholders could be convinced to try telematics if it could help them achieve a lower premium
Telematics schemes would be considered by 82% of consumers if they delivered lower premiums, a survey of 2,800 people has shown.
The research, by management consultancy Accenture, also indicated that price remains the chief concern when purchasing motor insurance.
Respondents in the 25-44 age bracket had the strongest interest in using telematics, suggesting that the technology may have a wider appeal than just young drivers, as previously accepted.
The 35-44 age group in particular emerged as the least satisfied or loyal in terms of motor insurance. Judging by this group’s interest in telematics, levels of satisfaction and loyalty could be improved by rewarding them with premiums better tailored to their risk profile through such an initiative.
Just 7% of respondents had any prior knowledge of insurers currently offering telematics. Of these few, 68% said they could be willing to adopt such a scheme.
The EU’s gender ruling, which comes into force in December, combined with affordability issues for young divers and the falling costs of telematics technology, means that insurers are again looking closely at developing telematics products.
Labour’s shadow transport minister, John Woodcock, said this week that his party would make it compulsory for insurers to offer telematics-based insurance should they be elected.