BIBA launches new telematics offering for members

The British Insurance Brokers’ Association (BIBA) has teamed up with member Marmalade to provide a young driver telematics scheme.

The new scheme will allow BIBA members to increase their share of the growing young driver market by offering competitive average premiums of around £1,300, on average, for 17–24 year olds on a full or provisional licence.

Mike Hallam, BIBA’s head of technical services, said: "The young driver market is notoriously tough and it can be difficult to find competitive rates. This scheme will provide a solution for members who are looking to place motor insurance for their clients and haven’t yet been able to successfully compete.

"Telematics is a growing product and we hope this will work well for both brokers looking to enter the young driver market and also those looking to place the small pieces of business for existing clients."

BIBA has ensured that members will retain customer ownership with the benefit of all sales being finalised by Marmalade.

The launch follows recent research from BIBA showing that the use of telematics policies continues to rise, with live policies increasing by nearly 25 percent year on year to exceed three quarters of a million in 2016.

The scheme has two products - new driver insurance, which offers a comprehensive telematics policy with no curfews or mileage caps, and cars for young drivers product that includes a wide range of new cars with low deposits, finance available and a year’s free new driver insurance or a contribution towards the premium.

Crispin Moger, CEO of Marmalade, said: "We know that telematics makes a big difference to the safety of a young driver. In fact studies show that 1 in 5 young drivers in the UK have an accident within the first 6 months of passing their test, but with our customers this figure significantly improves to only 1 in 16 – making our young drivers three times safer.

"We’re pleased to be working closely with BIBA so, jointly we can promote the benefits of the black box, including the education and feedback it offers the novice driver."

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