REDTAIL Telematics is delighted to be featured in the ‘renowned’ telematics suppliers list in the newly published Berg Insight report into market sizing for Insurance Telematics. The report, as ever with the substance from Johan and Martin, makes for interesting reading. It is of course important for REDTAIL to continually monitor and respond to market potential and characteristics, so I thought I would offer a couple of perspectives on ‘How big is it?’ and ‘What will it look like?’
Insurance Telematics remains a growth opportunity
One preferred descriptive for the telematics market is ‘nascent’. Implying a pent-up demand for developing technologies that will at some point meet and exceed its potential. On each iteration of the latest research report, the numbers move somewhat to the right, and perhaps jostle a touch between Americas, EMEA and APAC potential. But the bottom line remains somewhat constant. The consensus view from players in the industry (accepting that this church has broadened and diversified in the last ten years?!) is that we should anticipate 25-30% cgr over the next five years. Consistent with early promise? Perhaps not, but commercially interesting? Surely yes.
Insurance Telematics 2020 and beyond
Arguably, there are three key factors associated with that growth:
- Expansion of the accessible market (consumers/policy holders) for insurance telematics – beyond young driver
- Adoption of insurance telematics-based technologies throughout insurance – more usage in Claims?
- Connected vehicle data – who needs a black box?
So, in conclusion, and to answer the ‘What will it look like?’ question: well, we envisage a forty [more than 23] year old driver signing up to a policy offering fair and reasonable monthly rates based on mileage and driving behaviours, and in the knowledge that any claim will be handled swiftly, accurately and robustly. The future of insurance telematics, simple.