A survey conducted by Redtail Telematics, the long-established provider of integrated telematics solutions worldwide for the automotive, insurance and fleet sectors, and YouGov reveals that insurers are missing opportunities to win new telematics motor insurance customers. Recent YouGov/Redtail Telematics research reveals eight out of ten UK motorists surveyed have never received any communication from their motor insurance provider regarding the savings and benefits delivered by using telematics technology to help reduce their premiums.
Redtail Telematics commissioned the research in partnership with YouGov, whereby over 2,000 UK drivers were surveyed regarding their attitudes to using telematics-based insurance policies. With over one-million UK motorists currently using telematics-based insurance policies for their motor insurance (BIBA), the Redtail/YouGov research reveals that insurers are not capitalising on the increased popularity of motor insurance supported by telematics. A staggering 81% of those surveyed reported that they have not had any form of communication from their insurance provider regarding a telematics/insurance product and the range of benefits that the technology delivers.
The insurance sector has work to do in convincing UK drivers of the benefits delivered by telematics. Currently, only two per cent of those surveyed by Redtail/YouGov stated that they have a telematics-based motor insurance policy
Commenting on the lack of promotion by insurers of their telematics-based motor insurance policies, Redtail Telematics/YouGov research, Redtail Telematics CEO, Dr Colin Smithers said: “The issue is that, while the majority of insurers now have some form of telematics proposition, whether through a broker partnership or as a distinct part of their in-house capabilities, it is still seen as a niche part of their business and the benefit is limited to how telematics data is used to rate for risk, and how it can be used to better inform and incentivise drivers”.
Dr Smither concludes: “The benefits of using telematics for motor insurance purposes are widely documented, however, our research reveals that insurers need to continue engaging ever more deeply with drivers to better highlight the benefits and real savings that can be generated and to ensure their buy-in”.