Telematics is a broad term that can be applied to a vast range of different vehicle based applications. It’s often highlighted as one of the most significant potential growth markets in the M2M world but, as we’ve learnt from many years of involvement, Telematics is actually a number of different markets, each with different technical and commercial requirements from a partner like Wireless Innovation.
One of the telematics markets that’s hotly tipped for expansion over the next few years is vehicle ‘black-boxes’ for insurance purposes. As insurance premiums rise and the cost for insuring younger drivers climbs ever higher, insurance companies have got innovative and turned to the latest M2M technologies. Recent research that’s just been published by ABI research suggests that the insurance telematics market will grow by an astounding 90% between 2010 and 2017. That’s a rise from 1.85 million subscribers to just shy of 90 million.
These intelligent black boxes will allow insurers to monitor the actual use of the insured vehicle, keeping careful track of driver behaviour: acceleration, average speed, cornering, braking will all be monitored to keep drivers in line with the requirements of their insurance policies. Access to this level of detail is allowing insurers to develop driver specific insurance policies. If you’re in the 17-25 age bracket, this means that the black box will enable your insurer to keep you off the road between the hours of 11pm and 5am (when most young driver related accidents take place). It will also mean that if you contravene the terms of your policy you can expect an additional premium to be levied.
Yes it’s all a little bit ‘Big Brother’ but it’s an innovative attempt to adapt the latest M2M technology and address a real and pressing business need. For young people across the UK, finding competitive car insurance is growing increasingly difficult, having ‘Big Brother’ sitting in your passenger seat seems like a small price to pay.