Research from the British Insurance Brokers’ Association (BIBA) shows that ‘black box’ auto insurance sales have increased five-fold in the last two years and are set to reach 500,000 live policies in the next two years.
The telematics technology records a driver’s behaviour, including speeds, braking trends and hours driven. Insurers around the world have begun to implement this technology and adjust premiums so they more accurately reflect a driver’s exact risk profile.
BIBA found that since 2009, the sale of telematics policies has risen by 1,500 percent:
2009 – 12,000 live policies
2010 - 35,000 live policies
2011 – 100,000 live policies
2012 first 6 months – 180,000 live policies in first six months
BIBA points out that the average insurance savings for drivers with installed telematics devices were 25 to 30 percent. One insurer reported offering a 50 percent discount.
Leighann Forsyth, BIBA’s Head of Communications, said in a statement: “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.”
BIBA 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.
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