40% Increase in telematics motor policies in a year
14th March 2016
The latest annual research by the British Insurance Brokers’ Association (BIBA) shows that the number of live telematics based motor insurance policies including black box policies has increased by 40%.
These types of policies can offer savings of up to 25% for careful drivers. In particular, young drivers who often struggle to find affordable cover can save over £1,000.
BIBA surveyed the 30 leading telematics brands in the UK to determine the number of live policies currently in use in the market. The results showed a significant increase of 132,000 compared to the same time last year. There are now almost 455,000 live policies compared to 323,000 in December 2014.
The technology usually uses hard-wired ‘black boxes’ in the vehicle to monitor a number of different factors such as time of journey, speed, cornering, acceleration, braking and familiarity of route. These are analysed to give a risk profile – with the safest drivers enjoying the biggest discount.
Graeme Trudgill, Executive Director at BIBA, said: “Telematics is becoming the motor insurance solution of choice among young drivers as they can take control of their own premiums by electing to have their driving behaviour monitored. Industry statistics show there is a 40% drop in crash risk when a new driver has a telematics policy. Telematics equipment also helps reduce theft claims, many doubling as vehicle tracker devices.”
The BIBA Find-A-Broker service at www.biba.org.uk will list brokers that can provide telematics based cover and can be contacted on 0370 950 1790.
Trudgill concluded: “We are delighted to see these figures increasing, the benefits of a greater take-up of telematics technology are many: – more affordable premiums, safer roads, reduced uninsured driving and increase personal safely because some even operate as breakdown locator.”
For further information please contact BIBA press office:
Pam Quinn, Communications Manager
020 7397 0223
About the British Insurance Brokers’ Association
The British Insurance Brokers’ Association (BIBA) is the UK’s leading general insurance intermediary 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.
54% of all general insurance is sold by an insurance broker and they arrange 79% of all commercial insurance business.
Insurance brokers put the client’s interests first, providing advice, access to suitable insurance protection and risk management.
2009 – 12,000 live policies
2010 – 35,000 live policies
2011 – 100,000 live policies
2012 – 180,000 live policies
2013 – 296,000 live policies
2015 – 323,000 live policies
2016 – 455,000 live policies