Trakm8, a leading supplier of connected car data for UK insurers and brokers, has commissioned a new national driver survey to gain insights into how drivers purchase vehicles, choose insurance, and understand telematics solutions.
The survey highlighted that a fifth of drivers (20%) admitted the only reason they haven’t considered a telematics policy to reduce premiums is because they have never been offered one when buying or renewing their insurance, meaning millions of drivers are missing out on more accurate premiums.
The results of this survey come as the FCA outlines UK retail and wholesale insurance market regulatory priorities citing the consumer duty requirements on firms to offer fair value and deliver good outcomes for their customers.
The survey also showed that the majority of drivers (57%) would choose a telematics policy such as a pay-as-you-drive (PAYD) or usage-based insurance (UBI) solution if it reduced their renewal quote compared to a standard policy. The most receptive age groups to these policies were under 25’s (65%) and over 55’s (58%) with 35 – 44-year-olds the least likely to switch but the results showed still more than half (52%) of this age group were receptive.
Tramk8 already works with a number of insurers and brokers in the UK providing easy to install devices direct to policyholders and live data collection to help insurers access a detailed understanding of customer driving habits and vehicle health, so they can manage policies and risk profiles on an individual basis.
Adam Gooch, Managing Director for Insurance at Trakm8, added, “The results of our new driver survey highlight that a huge amount of UK drivers have never been offered telematics policies as an option when they renew. According to Pearson and Ham, consumers are seeing motor insurance prices increasing on average by 46%, so now is the time for insurers to offer customers the opportunity to reduce these premiums in exchange for driving behaviour data.
These policies allow drivers to benefit from much more accurate premiums and reward them for positive driving behaviour. Based on the recent FCA outlines, by offering a PAYD or UBI policy insurers can offer consumers fairer value and more accurate premiums.
Our comprehensive end-to-end insurance telematics solutions are designed to give insurers an easy route to market to offer their customers a leading PAYD or UBI policy.”