Sales of ‘black box’ motor insurance in the UK have increased fivefold over the past two years, according to new research published by the British Insurance Brokers’ Association (BIBA ).
‘Black box’ or telematics technology works by recording journeys and driving behavior so that premiums can be accurately applied to a driver’s exact risk profile.
BIBA (London) reckons the technology can offer savings on motor insurance of between 25% and 30% and that some young drivers could save up to £1,000 ($1,563) compared with buying a standard insurance package.
“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,” says Leighann Forsyth, BIBA’s head of communications.
BIBA says women are also set to benefit from reduced premiums from telematics. That is largely because women are likely to see an increase in motor premiums later this year due to the European gender rating ban.
The research will be welcomed by providers of M2M services, offering more evidence of the technology’s benefits in a particular industry.