LONDON, Feb. 22, 2019
LONDON, Feb. 22, 2019 /PRNewswire/ -- Drivers in the UK increasingly want usage-based insurance (UBI). 60% of drivers would take a telematics or 'black box' policy today to save money and improve safety, according to a studyi of over 3,000 motorists. Currently, insurers only offer this type of policy to approximately 5% of the population (typically the youngest, most inexperienced drivers) meaning that the vast majority of drivers who could benefit from lower insurance costs are missing out.
Not only is there a demand for telematics or black box types of insurance policies; they can help to improve driving skills. Road accidents remain one of the top ten causes of death worldwideii, yet new analysis of UK Government road accident data (stats19)iii now suggests that black box insurance has led to a dramatic 35.32% reduction in collision rates in 17-19 year olds over the past six yearsiv.
LexisNexis Risk Solutions, a leading data and analytics provider to the insurance sector commissioned the study. In parallel, LexisNexis undertook its own analysis of road casualty data amongst 17-19 year olds in relation to telematics insurance take-up.
The study revealed that of those interested in taking a telematics policy today, 42% would buy for a cheaper insurance premium with 41% citing fairer premiums as the biggest benefit. Whilst for 21%, potentially becoming safer drivers is the best aspect of telematics insurance.
Martyn Mathews, Senior Director of Motor and Telematics, Insurance, LexisNexis Risk Solutions says: "Our findings should provide a catalyst for the insurance sector to go beyond young drivers to offer the benefits of black box insurance products, such as the potential for money savings and improved driving habits, to a wider audience of motorists.
"Getting drivers confident in how their driving data is analysed is key. We need to be absolutely clear with customers about how their data is managed, who can access this data and when.
"If we can help more motorists get access to UBI, ultimately it may have a significant positive impact on driving behaviour and could even bring benefits along the lines we have seen with compulsory seatbelts, ABS and road design improvements."
In particular, the LexisNexis study sought to understand how insurance providers could overcome the barriers to adoption by offering a choice telematics devices or solutions. For example, smartphone driving apps are likely to appeal to more experienced motorists, whereas a fixed black box, or self-installed device maybe more suitable for young and older drivers paying higher premiums due to their risk of an accident. Interestingly, while two thirds of respondents have no privacy fears about using a telematics insurance policy, those aged 65 and over were the most receptive to the idea."
Martyn Mathews continues: "We urge motorists to ask for telematics policies that will not only help them manage their costs but also monitor their driving behaviour. At the same time, we encourage the Government to start to seriously examine data which may show a correlation between telematics policy take-up and the reduction in road casualties in young drivers and do more to incentivise drivers of all ages to take up black box insurance. Wider availability and adoption of these policies can not only help to bring down premiums for drivers of any age but can also help create better driving habits across the board."
Fast Facts from LexisNexis Risk Solutions Consumer Telematics Study
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX Group (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers across industries. For more information, please visit www.risk.lexisnexis.com, and www.relx.com.
For further media information, please contact Alison Reeson, Parm Heer, Clare Watson or Pat Moorcroft, at HSL on 0208 9779132 or at email@example.com
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LexisNexis Risk Solutions
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Global Director, Media and Analyst Relations
LexisNexis Risk Solutions
i Consumer Intelligence Research conducted September 2017 of 3025 motor insurance policyholders. Respondents were 50% males, 50% females and representative of the driving population across 7 age groups (17-19, 20-24, 25-34, 35-44, 45-54, 55-64, 65+) and social demographic groups –A, B, C1, C2, D, E.
Higher & intermediate managerial, administrative,
Supervisory, clerical & junior managerial,
Skilled manual occupations
Semi-skilled & unskilled manual occupations,
iii Analysis of Stats 19 data 2011-2017. https://data.gov.uk/dataset/cb7ae6f0-4be6-4935-9277-47e5ce24a11f/road-safety-data