Thanks to the use of telematics devices, many have predicted that discount car insurance may once again return in the UK.
Joint chief executive and founder of Insure the Box, one of the car insurance companies offering telematics-based insurance, recently commented on the success of the new technology.
A former actuary for Pearl Insurance, Mr Brockman returned to the motor car insurance market this past June and immediately caused a bit of a stir. Mr Brockman decided to risk everything on a new agency that exclusively underwrote telematics-based insurance policies, hoping to succeed where so many others had failed.
Many other car insurance groups had attempted to crack the telematics nut in the past. One such company was Aviva, who launched a telematics-based insurance in 2005, which lasted only three years. While Aviva cited take-up numbers lower than anticipated, the last nine months of business for Insure the Box has shown encouraging signs.
In excess of 21,000 policies have been sold by the company to date, which has generated more than £20 million in gross written premiums. Insure the Box predicts that by year end they can easily sell 60,000 policies. Moreover Mr Brockman’s new venture was already turning a profit by the beginning of this year.
The joint chief executive for Insure the Box stated that he had begun to think on how to rejuvenate the motor insurance market three years ago. Convinced that telematics technology was the best way to do so, he then needed to suss out how to factor the expenses related to the infrastructure and the box itself in a marketplace that, while competitive, has been generating losses steadily.