Telematics program sales see 61% increase since 2012 among British drivers

Behaviour-based auto insurance sales have increased 61% since June 2012, and is expected to rise, the British Insurance Brokers’ Association said this week.

BIBA contends that telematics programs can result in insurance savings of as much as 25% for British drivers and up to £1,000 for young drivers.

Since June 2012, the number of telematics policies has increased by 116,000 from 180,000 to 296,000.

“The rise of the new App smart phone technology will see sales of behaviour based products continue to increase,” Graeme Trudgill, BIBA’s executive director noted in a press release.

“BIBA’s new research demonstrates how young drivers are embracing technology and more and more brokers are launching products to meet the demand.”

Overall, BIBA’s research suggests that telematics policies have grown from 12,000 in 2009 to nearly 300,000 last year, with the number of service providers growing.

2009 – 12,000 (main provider Coverbox, ikube)

2010 – 35,000 live policies (main providers Coverbox, Insure the Box, ikube

2011 – 100,000 live policies (main providers, Coverbox, Insure the Box, ikube, Co-op, Autosaint, Ingenie, Marmalade).

2012 – 180,000 live policies (main providers Coverbox, Insure the Box, ikube, Co-op, Autosaint, Ingenie, Fair Pay, Marmalade, AA, Swinton)

2013 – 296,000 live policies (main providers Coverbox/Drivestar, Insure the Box, ikube/Fair Pay, Co-op, Autosaint, Ingenie, Marmalade, AA, Carrot, Hastings Direct, iGo4, Aviva, E-sure/Sheilas Wheels, Co-operative, Direct Line).

Due to “commercial sensitivities” BIBA said it cannot state the number of sales from each provider.