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It's Time for Telematics
We all need to have car insurance in the UK, but few of us understand how the costs are calculated or justified. As part of Telefónica, we’re a market leader in Telematics – a digital solution that monitors a driver’s habits and style, which can be used to accurately represent their driving behaviour.
This means that car insurance companies can get a better idea of what a driver is like, and charge a more representative annual fee. Telematics also encourages safer driving, by sending automated accident reports to emergency services and notifying drivers of breakdowns ahead of them.
The results of our UK-wide You Gov survey found widespread mistrust and confusion around current car insurance premiums. 42% of respondents answered that their car insurance didn’t offer value for money; and 59% said they didn’t fully understand how their premiums were calculated.
56% of respondents viewed insurers as being the same, only differentiated by price, implying low levels of customer loyalty in the industry and consequently lower margins expensive acquisition costs. 60% said they’d be more loyal to their provider if driving habits and usage were included in pricing. This shows the opportunity Telematics could present in creating stronger and more meaningful relationships between the insurance provider and their customers.
We’re taking a lead in Telematics innovation and in customer experience. Our parent company Telefónica was the first to pilot a pay-as-you-drive car insurance policy in Spain this February and we’re rolling out a similar model in Germany right now.
Telematics is a priority for our future. We want to become the partner of choice for insurance providers in the UK. This is part of a broader strategy to use our experience of providing best in class mobile communications to expand into complete and trusted, premium digital services.
For more information on Telematics click here!