A device that monitors vehicle speeds could lead to lower insurance premiums for careful Australian drivers.
Insurance Box uses an on-board telematics device and can be fitted to most cars manufactured after 2000. Telematics is the integrated use of telecommunications and informatics.
It was rolled out by QBE and NIA Underwriting Agency recently in conjunction with insurance technology provider SSP. The device will send information via the KORE Wireless machine to machine (M2M) network in Australia.
Insurance Box founder Frank Peppard said that it collects information about acceleration, braking, speed and time of day.
“Customers can access feedback via a dashboard to see their own score and feedback on their driving.”
He added that there are many safeguards in place to protect driver privacy.
“The score and feedback can only be viewed by the customer and is securely protected. Our technology partners handle de-personalised data without access to a customer’s personal insurance information.”
According to Peppard, Insurance Box customers can expect to receive a “competitive premium” for signing up.
“If you’re a good driver, you may be rewarded with further savings at renewal.”
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SSP Australia managing director Michael Clarke said that safer drivers will be attracted to the savings generated by telematics based schemes.
“The scheme is a significant competitive advantage for insurers that are prepared to embrace innovation to control claims costs and attract new customers while large insurers may be pressured to upgrade their offerings to maintain market share.”
He added that a Morgan Stanley 2013 Motor Insurance survey conducted in March with 2006 respondents found that 7 per cent of the total Australian motor market may consider telematics insurance.
“This includes 17 per cent of the 40 per cent of motorists paying over $900 a year in premiums, a high proportion of which are young drivers who are at the highest risk of being involved in an accident.”
The research also found that 54 per cent of Australian drivers would consider fitting a telematics device in their car. Twenty-three per cent of older drivers (aged 50 to 64) would come on board as long as they achieved small financial savings.
QBE has been contacted for comment by Computerworld Australia.
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