New Telematics Scheme Launched for BIBA Members
10th May 2017
The British Insurance Brokers’ Association (BIBA) has teamed up with member Marmalade to provide a young driver telematics scheme.
The new scheme will allow BIBA members to increase their share of the growing young driver market by offering competitive average premiums of around £1,300, on average, for 17 – 24 year olds on a full or provisional licence.
BIBA has ensured that members will retain customer ownership with the benefit of all sales being finalised by Marmalade. There is also exclusive personal business use for BIBA members’ policies, in addition to social, domestic, pleasure and commuting.
The launch follows recent research from BIBA showing that the use of telematics policies continues to rise, with live policies increasing by nearly 25% year on year to exceed three quarters of a million in 2016.
The scheme has two products: New Driver Insurance, which offers a comprehensive telematics policy with no curfews or mileage caps. A second product Cars for Young Drivers includes a wide range of new cars with low deposits, finance available and a year’s free New Driver Insurance or a contribution towards the premium.
Mike Hallam, BIBA’s Head of Technical Services, said: “The young driver market is notoriously tough and it can be difficult to find competitive rates. This scheme will provide a solution for members who are looking to place motor insurance for their clients and haven’t yet been able to successfully compete. Telematics is a growing product and we hope this will work well for both brokers looking to enter the young driver market and also those looking to place the small pieces of business for existing clients.”
Crispin Moger, CEO of Marmalade, says: “We know that telematics makes a big difference to the safety of a young driver. In fact studies show that 1 in 5 young drivers in the UK have an accident within the first 6 months of passing their test, but with our customers this figure significantly improves to only 1 in 16 – making our young drivers three times safer.
“This safety statistic is something that we are proud of but there is always more that we and the wider industry can do to ensure safety records keep getting better. We’re pleased to be working closely with BIBA so, jointly we can promote the benefits of the black box, including the education and feedback it offers the novice driver.”
As part of the scheme, brokers will have access to Marmalade’s exclusive Broker Dashboard, their dedicated Broker Support Team and free marketing material.
Full details are available on the BIBA website.