Categories: Feature Articles

Black Box Telematics InsuranceBlack Box Telematics Insurance to Mass Market in 2016

Black Box Telematics Insurance to Mass Market in 2016 is it a possibility?

I recently attended a webinar at which a number of world renowned experts were speaking about the possibility of using smartphones as an aid to attracting more customers to the telematics insurance market. It was suggested that telematics smartphone apps might have more of a mass market appeal.

I must say with all due respect, that I do not see that smartphones or any other form of telematics marketing will make this form of insurance acceptable enough to the general public that it will ever have mass market appeal. The only thing that could create enough of an incentive would be to offer discounts far in excess of what is presently offered which is around the 20% mark. It would not be an exaggeration to say that in order for it to be attractive discounts of 75% and upwards would need to be offered which would be unsustainable for insurance companies.

As it stands there is no incentive for drivers to adopt telematics insurance, nothing to compel them to have their driving monitored continuously. Why would you allow yourself to be monitored every time that you turn your ignition key unless you were actually getting something that benefited you, something tangible.

Why would you accept a form of monitored insurance that has no industry standard and no facilities to transfer long built up driving scores between insurers.

Black Box Telematics Insurance to Mass Market in 2016

I have monitored this form of insurance for the past five years and as yet have to see any government involvement in standardising the data collection criteria to ensure a fair scoring system or any co-operation between insurers in allowing customers to transfer their data.

There is no incentive, nothing that would make you want to even try this form of insurance.

What there really is, is a bunch of resentful young drivers who are being forced into telematics insurance by exorbitant insurance costs, only to ditch it and complain as soon as they possibly can on Twitter to warn others. This is not the way to treat the drivers of tomorrow, those who understand are the keenest to adopt new technology.

I cannot see insurance companies getting black box insurance to mass market ever, that is not to say that black box insurance will never get to be a mass market product. It will, however, I am sure that it will be in an entirely different format and it will not be insurance companies that are in control, it will be vehicle manufacturers.

It stands to reason that telematics will become standard as it offers a way to improve driving skills, enable drivers take charge of their insurance costs, and will reduce death and injury rates on our roads.

How could vehicle manufacturers succeed where insurance companies have failed, I hear you ask.

Vehicle manufacturers will succeed where insurance companies have failed simply by coming at the market in a different way. They have no need to compete with other insurance companies for business, they are simply providing a telematics option to their informatics package, another service that will make their product more attractive and they do not have to use GPS tracking to monitor you.

Black Box Telematics Insurance to Mass Market in 2016

Vehicle Manufacturers Will Win the Telematics War

I do not want to be monitored by technology every time that I start my car engine, every jab at the accelerator, every stab at the brake marked down as a fault by some anonymous all seeing GPS eye and I am sure that you feel the same.

What I do want is technology that is useful to me. I want the technology in my car to enable me, to make my life easier, to inform, entertain and advise me. I want it to present solutions to problems.

I want my car to talk to me, to know me. When I sign in, I want my car to know my itinerary, to have any journeys that I may have to take planned in order of importance, to include diversions if needed, points of interest, and facilities that I may need notated for my use should I choose.

I want my car to control its own maintenance program and notify myself and my local garage of any problems schedule my car in for repair and routine maintenance as required.

I want my car to give me access to real time driving analysis via head up display displayed in such a way that makes it easy for me to drive at optimum performance for each journey and any conditions that may be encountered.

I actually want my car to be able to transcribe my driving character (Driving DNA) in such a way that it presents me with a score that is of industry standard, and regulated in order that I may present it to a range of insurers who can then bid for my business.

That is what I want from my car, I hope that you want the same. If enough of us want the same thing hopefully vehicle manufacturers will take note and begin the process of making it happen.

As for black box insurance in its present form, forget it, it will never reach mass market, it is a flawed concept that will be used as a tool to try and control young driver’s behaviour until something better comes along.

black box telematics insurance

Thank you for reading Black Box Telematics Insurance  to Mass Market in 2016

Top