Research from the British Insurance Brokers’ Association (BIBA) shows that ‘black box’ motor insurance sales have increased five fold in the last two years, and are set to snowball to around 500,000 in the next two years.
BIBA says that the ‘black box’ technology, called telematics, can offer savings on motor insurance of around 25% to 30% and some young drivers can save up to £1,000.
The technology works by recording journeys or driving behaviour so that premiums can be accurately applied to a driver’s exact risk profile.
Leighann Forsyth, BIBA’s Head of Communications, said: “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.
Drivers can find insurance brokers offering such technology at BIBA’s Find a Broker service on 0870 950 1790 or www.biba.org.uk
BIBA’s research can be downloaded here.
Notes to editors
1. For further information please contact:
BIBA press office:
Leighann Forsyth, Head of Communications
020 7397 0223
2. BIBA research shows the following increase in telematics policies.
2009 - 12,000 live policies
2010 - 35,000 live policies
2011 - 100,000 live policies
2012 - first six months 180,000 live policies
3. About British Insurance Brokers' Association
The British Insurance Brokers' Association (BIBA) is the UK's leading general insurance organisation representing the interests of insurance brokers, intermediaries and their customers.
BIBA membership includes just under 2,000 regulated firms having merged with the Institute of Insurance Brokers (IIB) in November 2011.
General insurance brokers contribute 1% of GDP to the UK economy and BIBA brokers employ more than 100,000 staff.
BIBA helps more than 400,000 people a year to access insurance protection through it’s Find a Broker service, both online and via the telephone.
Brokers provide professional advice to businesses and individuals, playing a key role in the identification, measurement, management, control and transfer of risk. They negotiate appropriate insurance protection tailored to individual needs.
BIBA is the voice of the industry advising members, the regulators, consumer bodies and other stakeholders on key insurance issues. BIBA provides unique schemes and facilities, technical advice, guidance on regulation and business support and is helping to raise, and maintain, industry standards.