The rise of telematics-based car insurance policies is reshaping the industry, driven by customer demand for digital management, cost savings, and transparency. A recent GlobalData poll conducted on Verdict Media sites in Q4 2024 and Q1 2025 found that 36.4% of respondents were convinced to adopt a telematics policy due to the ability to manage their policy online or through an app, closely followed by 36.2% who cited cheaper premiums as the primary motivator.
Additional key factors influencing consumer adoption included the ability to track journeys online (35.2%), transparency in policies (34.7%), assistance in tracking stolen vehicles (33.8%), and more efficient driving habits leading to fuel savings (32.1%). Notably, 31.1% of policyholders were drawn to telematics for its potential to improve driving behavior.
The increasing integration of technology in insurance products is also evident in the rapidly expanding cyber insurance sector. According to GlobalData, the cyber insurance market in the UK is expected to experience double-digit growth until 2028, with an estimated 44.7% growth in 2024 and a projected compound annual growth rate (CAGR) of 27.7% from 2023 to 2028.
Despite this rapid expansion, insurers face challenges in assessing cyber risk due to a lack of historical data and difficulty in limiting exposure. A separate GlobalData poll of 105 industry insiders found that the primary concern for insurers offering cyber coverage is accurately assessing risk. Other major concerns include challenges in managing claims and the limited availability of reinsurance, especially as cyberattacks become more sophisticated.
“Cyber insurance is unlike other lines, such as household, where insurers would limit the number of insured properties in high-risk areas,” said Ben Carey-Evans, senior insurance analyst at GlobalData. “This creates a difficult balance between trying to increase penetration rates and grow the product and trying to keep premiums down to attract customers as the level of risk continues to rise.”
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