Half of UK drivers are interested in insurance telematics technology products

Half of UK drivers would be willing to embrace telematics-based insurance products, according to consumer research by Towers Watson.

The risk management consultancy said telematics policies - which use technology to provide the insurer with data on how a vehicle is being used – are offered with a guarantee that premiums would not increase, the number of interested drivers increased to 57%.

Towers Watson said the research showed that telematics products also appeal to drivers over 35 who were interest in additional services, such as theft tracking, automated emergency calls and breakdown notification.

Duncan Anderson, global property and casualty pricing leader at Towers Watson, said: “The study shows it’s wrong to believe that telematics insurance is just a young driver proposition. While it’s particularly likely to appeal to a younger age group on economic grounds, as the technology costs fall and awareness of the wider benefits increases, drivers of all ages are potential targets for telematics insurance providers with the right proposition.”

Towers Watson also said that in many markets current ‘pay as you drive’ products are likely to penalise the very drivers who are most interested in telematics – those who drive more frequently.

“Products that focused on mileage, restricted times of vehicle usage or simple ‘event counters’ seem likely to have a short-term future. The indications are that the appeal of telematics to most consumers is largely associated with ‘pay how you drive’,” said Anderson.