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TELEMATICS: THE LATEST NUMBERS

11% Rate at which production of light vehicles equipped with some form of telematics is expected to grow annually

88% Percentage of new cars that will have integrated telematics by 2025

104 MILLION Number of new cars expected to have some form of connectivity by 2025

31% working for so long – for those businesses it’s working for, why change? And for customers, they don’t know anything else.”

convenient, more flexible and more tailored to them,” he says, “they’re looking for the same thing with their car insurance, and they

“Clearly the market of the future is going to be defined by dynamic data, as opposed to the old world of static data” Jonathan Hewett, Octo Telematics In contrast to traditional auto policies, By Miles offers a pay-per-mile policy that it says is much fairer to customers, the majority of whom are currently subsidising highermileage drivers, Baxter points out. “In the same way that all sorts of other areas of customers’ lives are becoming more

don’t understand why it doesn’t exist yet.” Hewett agrees that consumers are increasingly demanding a fairer deal, which has spurred new concepts in insurance. “The idea of ‘paying as we consume’ is a broader macro factor that’s driving the market,” he says. While auto telematics is already in the

Percentage of policyholders who expect to get a discount of 20% or more by using telematics Sources: IHS Markit, EY, Deloitte

mainstream, connected devices are now starting to make their way into the home for a similar purpose. Indeed, as part of their partnership, Octo and Willis Towers Watson plan to cast their net wider than just auto. “The team that we’re acquiring brings increased capability to interpret and analyse ever-increasing amounts of data in all different contexts,” Hewett says, “be it a car, be it a home, anything that can be connected. Big data is one thing, but smart insights and being able to make smart business decisions is quite another. Clearly the market of the future is going to be defined by dynamic data, as opposed to the old world of static data.”

www.insurancebusiness.co.uk

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Insurance Business UK 2.04  

Specialty Brokerages 2017

Insurance Business UK 2.04  

Specialty Brokerages 2017