Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2013
05

Young motorists are opposed to telematics, Deloitte finds

Open-access content Thursday 2nd May 2013 — updated 5.13pm, Wednesday 29th April 2020

The majority of young motorists do not want to have their driving monitored to help set car insurance premiums even though they would benefit most from the move, according to research published by Deloitte yesterday.

2

The consultancy found that 58% of 18-24 year olds surveyed on its behalf were unwilling to use a telematics device, the black box technology that relays information to insurers such as speed, breaking and acceleration behaviour. This was significantly higher than the 37% of respondents for the survey as a whole who said they were against using it.

Similarly, over a third (35%) of respondents aged 18-24 were against using telematics even if it meant their car insurance premiums were reduced, higher than the quarter of all respondents who expressed this view.

Intrusiveness was a key reason for peoples' opposition to the technology and was cited by 78% of respondents. This rose to 92% for the 18-24 year-old age group.

Telematics has been put forward as a key way for young drivers to reduce their traditionally high car insurance costs by making it easier to identify more careful drivers and reduce their insurance premiums accordingly.

However, James Rakow, insurance partner at Deloitte, says the research had found 'substantial resistance' to the use of telematics in general, and in particular among the group the technology could help the most.

'At a time when many insurers are working hard to build a telematics solution, this gives the industry some interesting feedback about how readily their products will be received by potential customers,' he said.

'Telematics accounts for about 1% of the car insurance market. To make it more popular, insurers will have to identify carefully their target audiences such as parents who care about their children's driving and who often pay the insurance premiums.'

Yesterday, the Association of British Insurers published guidance to help drivers get the most from telematics. The guides, one aimed at consumers and the other outlining good practices for the insurance industry, aim to reflect the potential for the technology to 'dramatically change' the motor insurance market, the ABI said.

Kate Carr, the association's head of fraud and specialist lines, added: 'The emergence of telematics technology presents a new challenge for insurers as they design new products that best meet the needs of their customers. The guidance released today will help insurers develop products that are consumer friendly, while also helping consumers understand whether a telematics policy is right for them.'

This article appeared in our May 2013 issue of The Actuary.
Click here to view this issue
Filed in
05
Topics
General Insurance

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Pensions Actuarial Analyst

London, Midlands, Scotland
£Market Competitive
Reference
143788

Senior Manager/Director level roles - Life insurance

Stirling
Generous salary with excellent bonus and benefits
Reference
143787

Reinsurance Pricing Actuary

London (Central)
£60-90K depending on experience
Reference
143786
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ