It has been suggested that by 2030 about 50% of the world’s vehicles will be insured by usage based policies, with around 100 million polices worldwide within three years. Octo Telematics now covers 5 million cars worldwide; an increase of 25 % when compared to last year which gives it just shy of 40% of the active UBP market.
Andrew Lee who is the firm’s head of market intelligence and analysis, said the 5 million car milestone was significant for the entire connected insurance industry. “What this really demonstrates is that there’s a real appreciation for this type of policy.”
Telematics taking over the world
So telematics has matured from the domain of young drivers who had such policies forced upon them, into the mainstream where people are actively choosing a UBP because it suits them. From an insurer’s perspective all the data collected enables them to make recommnedations to their policy holders about driving attributes and also enables them to make special offers, but also and perhaps just as important is the fact that using a UBP should make the claims process quicker and more efficient. This can apply to liability and vehicle repairs.
Whilst telematics seem to have been around for a while, they remain one of the main disruptors in the market today, and this trend looks set to continue.