The study claimed that 27% of the PAYD market will make the transition to smartphones within five years as technology and sensors in mobile devices reach the technical standards of their ‘black box’ counterparts.
The firm expects the PAYD sector to prove its worth financially, and take a 17% stake in a usage-based insurance (UBI) market worth £6.4 billion across Europe’s top five countries.
Wejo launched a smart driving app earlier in the year, which tracks journeys and provides a driver score based on factors like braking, acceleration, speed, location and time of day.
This app is an alternative to traditional telematics solutions – often referred to as the ‘black box’ – which are installed in the driver’s vehicle and send data wirelessly in real-time to an online portal.
Richard Barlow, CEO of Wejo, said: “There is no doubt that those insurers that ignore mobile solutions will struggle to compete.
“For consumers, the growth of the smartphone-only UBI market represents a cost-effective way of getting tailored insurance quotes and policies.”