One provider of discount car insurance quotes through the use of telematics-based insurance recently commissioned a new report on the insurance industry, calling on data from 250 million vehicle journey miles.
The report, which analyses in excess of four billion fields of data, is poised to change the way car insurance companies set premium pricing. Johan van der Merwe, the new owner of the telematics motor car insurance provider, was the driving force behind the commission of the report, which will be presented in march to a panel of leading insurers.
Telematics, which uses satnav technology to record driving parameters such as parking location and routes taken as well as cornering, braking, may lead to a revolution within the insurance industry in regards to how it calculates car insurance rates, remarked Mr Van der Merwe. The new report he commissioned reveals that the case for changing risk assessment strategies is now, thanks to the technlogy; compare,analyse, and record motoring behaviour, thus using actual data instead of having to rely upon so-called ‘proxy rating’ statistical information, he added.
Rates should not be based on home address and lifestyle, Mr Van der Merwe remarked, especially when technology now exists to accurately record driving style and location. With modern vehicle security has minimised the risk of theft, one of the main arguments for using addresses as a factor in insurance, while driving style is much more important, as death or injury stemming from motor accidents is much more costly to insurers than simple theft, added the insurance company owner.