Research shows facts behind telematics hype
Sales of telematics policies have increased five-fold in the last two years and will increase to around 500,000 in the next two years, according to Biba research.
The trade body’s research also showed that the technology can save drivers between 25% and 30% on their motor insurance, with one anonymous provider quoting discounts of 50%.
The research found that in 2009, the main telematics intermediaries selling policies were Coverbox and ikube, with insurethebox joining the duo as a top provider in 2010.
But 2011 and 2012 saw a rush of new entrants becoming top intermediaries, with Co-operative Insurance, Autosaint, Ingenie, Fair Play, Young Marmalade, The AA Insurance and Swinton joining Coverbox, ikube and insurethebox.
The research did not reveal how many policies each firm sold, but found that there were 12,000 live policies sold in 2009, 35,000 in 2010, 100,000 in 2011 and 180,000 in the first half of this year.
A Biba spokesman said: “The dramatic increase in black box technology follows the rising cost of premiums for young drivers, the decreasing cost of technology, and new product availability from insurance brokers.”
The trade body also said that women, who are likely to see an increase in motor premiums later this year due to the European gender rating ban, could benefit from reduced premiums from telematics.