International insurance broker Howden has launched its telematics data services in the UK.
The product, called Howden Drive, utilises over a decade’s worth of driving and claims data from Europe, as well as data from Ingenie in the UK, to optimise insurer loss ratios and reduce risk in insurer portfolios. It involves the use of a customer application connected to a beacon installed in the vehicle, which sends intervention communications to improve driving behaviour.
Every policyholder, regardless of age or driving experience, receives a driving behaviour score based on the data collected. This score enables policyholders to reduce their premiums at renewal, making insurance more affordable for a wider range of customers.
Howden Drive comes to the UK after a successful rollout in Europe, where it has been used by more than 250,000 policyholders since 2018.
Penny Searles, chair of Howden Driving Data, made note of the growing demand for telematics applications among insurers due to changing market dynamics and the desire to lower insurance premiums for mainstream policyholders.
“With motor premiums at their highest point since 2011, driven by a lack of capacity, and with the cost-of-living crisis biting, customer appetite for reducing premiums has never been greater,” said Searles.
“I am excited to see where the mass adoption of collecting and applying telematics data across policies will lead, and I am confident Howden will be well placed to support brokers and insurers while improving road safety and reducing premiums for customers.”
Howden Driving Data managing director Jon Law (pictured) also expressed excitement about introducing the new service in the UK, especially as customer appetite for cost reduction solutions is high.
“The data collected from our devices and apps not only provides a behaviour score to lower premiums, but it validates the data set initially provided at quote for the entire life of the policy,” said Law.
“In a market where we often see many key risk factors provided at quote change mid-term without insurers being notified – such as business use, kept address, and marital and employment status – the ongoing validation of these factors will help insurers charge the right premium for the right risk.”
What are your thoughts on this story? Feel free to share your comments below.
