One consequence of the spiralling cost of motor insurance has been the rise of telematics policies.
Telematics’ dominance when it comes to giving the best quotes to younger drivers has become normal.
Our Consumer Intelligence Car Insurance Price Index showed a telematics tipping point this quarter, with more than half the five cheapest quotes for 17-24 year olds coming from telematics providers in June, July and August.
Following the publication of our Motor Insurance Price Index for the past 12 months, we can now reveal that Telematics brands are dominating the market for under 25s this quarter.
Ian Hughes Chief Executive of Consumer Intelligence presenting at the Experian - Insurance Summit 2016.
Owned by Spanish telecommunications company Telefónica, O2 is currently the second largest mobile telecommunications provider in the UK. It seems to be the first service company of its kind in the UK to move into the insurance market.
O2 Drive began to appear on the scene at the tail end of last year, when Consumer Intelligence saw them quoting on comparethemarket.com (CTM).
Telematics has often been cited as the silver bullet the motor insurance industry needs to throw off years of struggling to achieve a profit and return the industry onto a path towards profitable growth.
Monitor, score and reward is the message almost every insurer is shoving in the face of consumers today. When I recently asked my wife what she thought about telematics insurance, she answered “I wouldn’t have it, I was done with being graded when I left university”.
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