The business advisory firm recently surveyed motor insurance customers and found that 50% would be happy to share their driving data in return for tailored policies.
Customers would share more of their data with insurers through digital platforms such as smartphone apps for a discounted policy once the driver has accumulated a certain number of ‘safe driving’ points.
Deloitte UK head of insurance, David Rush, said: “This year’s survey showed a 20% rise in the number of customers willing to switch their insurance policy.
“When this ‘switchability’ is combined with people’s readiness to share their data and the rise of connected devices, the prospects for change in insurance are significant.”
It was found that potential development for digitally-enabled motor insurance is highest in Italy, the UK, France, Germany and Spain, with the Italians the least reluctant in Europe when it comes to data sharing.
There are more than 4.5 million telematics insurance policies in Italy, accounting for 15% of the market, however, their customers’ readiness to share data could see this rise to 27% by 2020 according to the research.
In the UK, there are 450,000 telematics policies at present, making up 5% of the market which Deloitte believes could rise to 23% with digitally enabled insurance products by the end of this decade.
Although price is a major sales point for telematics insurance, the research states that this won’t be the only key focus for new insurance policies in the future, with car care services and free roadside assistance potentially on offer.
Deloitte insurance partner, James Rakow, said: “Digitally-enabled motor insurance is on its way to becoming an important offering in all European countries. Customers are also ready for a new insurance product where insurers would be more than just a risk carrier or a company that offers discount-based polices.
“We could see new policies that not just include traditional motor cover, but also services like automatic emergency assistance or theft and recovery notifications, depending on the driver’s needs. Insurers who follow this path could emerge as winners in a redistribution of the market for motor policies.”