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Progressive insurers are quickly grasping the potential of telematics to both cut claim costs and get closer to their customers. But further innovation will require a partnership with manufacturers.
As the use of telematics proliferates in many countries, improving risk assessment and fraud detection in motor insurance, this technology has the potential to also allow insurers to get much closer to their customers and offer value added services – but they will also be heavily reliant on car manufacturers for further innovation.
Telematics-based motor insurance has recently seen a strong growth in many countries. In the UK, for example, the number of live telematics based motor insurance policies including black box policies has increased by 40 percent within one year, according to British Insurance Brokers’ Association (BIBA) research from March 2016.
These types of policies can offer savings of up to 25 percent for careful drivers. In particular, young drivers who often struggle to find affordable cover can save over £1,000, according to BIBA.
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