Adoption of Auto Telematics has increased 28% a year since 2018
Wow! Arity and IoT Observatory evangelising strongly. My thanks to Henry and Matteo for another compelling research write up. Being atypically myopic, I am driven to ask why not growing UK and Europe?
Main factors in US success are defined as ‘trust and perceived value; believing the insurer will use driving data responsibly and deliver tangible benefits in return’. Positive sentiment has increased 20% over the last ten years, and more so in those under 53 years old. And interestingly, insurance companies are up there with banks in most trusted protectors of personal data. From that data use consumers want pricing that reflects lifestyle, rewards for safe driving and automatic crash assistance. And are open to share a driving score for a personalised quote.
For insurers, telematics unlocks incremental economic value through sensing events, real time data and AI driven analytics. This enables smarter underwriting, faster claims processing and proactive risk management. And as REDTAIL has posited relentlessly, safer driving benefits the environment, and of course reduces accidents and injuries, and saves lives. It is a social good.
There is increasing buzz in the UK on ‘now is the time’ – my esteemed colleagues are noisy with that. In my insurer conversations, simply articulating the US case study is not enough. So, what is? A handful of ideas:
- GDPR. As REDTAIL experienced in our pioneering work with Ford and Admiral to deliver connected insurance, work on permissions and data ownership/handling was paramount. Not as easy as US
- App and tag and app adoption. UK UBI has remained rooted in black box device and young driver. Limited credentials for app’n’tag and especially app only
- Insurtechs must do the leg work. As previously mentioned, I have had this reality impressed upon me by notable large insurer leaders. Risk averse?
- Transactional insurance apps still limited. My dear friends at ByMiles tried to go there. Not the easiest. US way ahead
- I have tried to compare sentiment. Anecdotally we don’t like car insurance here. PWC 2024 research decrees a -73% positive sentiment to motor insurance in the UK. US +68%. Ouch.
- US insures vehicle, UK the driver, which gives the US a somewhat greater interest in personal
In my ignorance as far as I can get. Is there a silver bullet? Is it Connected? Is it App…..thoughts on a postcard please!