Now is the Time for Connected Driving

The Floow - August 23rd, 2021

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Re-evaluating Telematics for a New Era of Personal Mobility

Our new report explores the changes to mobility over the last 15 months, increased consumer interest in telematics and Usage-Based Insurance, and why now is the time to implement telematics into your business.


Over the last 5 – 10 years, the tide in the motor insurance market has changed as technology and sensors have become more prevalent throughout our day-to-day lives, encompassing everything from smartphones to vehicles.

This ability to collect journey and driver behaviour data has presented insurers with the opportunity to create an in-depth understanding of their drivers, and their risk profiles, in order to price policies more accurately and develop new Connected Insurance products which add value to the policyholder.

The introduction of the smartphone into telematics allowed the technology to grow from event-based fleet tracking and young driver box-based policies, to offering comprehensive and engaging policies which provided allimportant context to trips, and allows for the inclusion of driver coaching, rewards functionality and ultimately crash detection.

A number of new incumbents and tech-savvy disruptors joined the market offering policies and solutions, such as pay-as-you-drive or pay-per-mile, which are flexible, affordable and easy to set up – with innovative product design and customer experience – to suit the requirements of an increasingly tech-led society.

This was something that many consumers were looking for, as McKinsey pointed out back in 2018, when they found that 84% of US consumers were willing to share their personal data on navigation and mobility. (Source: McKinsey and Company, ‘Telematics: Poised for Strong Global Growth’, April 2018)

While in the UK, our survey of 1,052 drivers found that nearly half (46%) expected telematics to become the norm for car insurance. (Source: Research conducted online by Maru/Blue for The Floow among a national representative sample of 1,052 motorists in September 2019)

The increased acceptance of technology within insurance policies presents a great opportunity for insurers to redefine their relationship with customers by harnessing the power of telematics.

Due to the ongoing COVID-19 pandemic, the last 12 months have highlighted the need to effectively understand policyholder mobility, and crucially, we can now see that consumer attitudes have changed to the point where they are demanding a new type of insurance.

The potential for telematics adoption continues to rapidly evolve and for insurers it is now more important than ever to acquire a solid understanding of driving behaviour.

Executive Summary

The COVID-19 pandemic has seen a shift in mobility which is likely to stay with only 33% of our survey respondents believing their average miles will increase post-COVID, and night-time and morning commuting times still up to 30% reduced compared to pre-COVID levels.

There is an increased interest in telematics and Usage-Based Insurance (UBI), as 38% of respondents said they were more likely to consider telematics/ UBI policies or were already looking into them, for the next time they renew

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43% of survey respondents don’t have a problem sharing journey data with their insurer, with 60% of respondents in each age group willing to share data. It’s clear that telematics is no longer just for young drivers.

Consumers aren’t just looking for premium discounts. With only 44% of respondents wanting to pay for their insurance via a traditional method, they are increasingly looking for policy options which provide rewarding experiences, and greater flexibility.

Cost-effective telematics has become accessible for all, due to the introduction of the smartphone. This has seen technology costs per telematics policy fall by 80%, as there is no longer a requirement for a fitted device.

Rewards can not only deliver improvements in driver behaviour, up to 46% in the lowest-scoring decile, but they can also help to retain customers, and they are cheaper than discounts.

Telematics is proven to predict risk over traditional factors. It can be used to improve driver safety, and increase insurance profit – by utilising telematics data, we can deliver a 17% improvement in Combined Operating Ratio (COR) resulting in an £82 profit increase per average policy


Read the full report

Download the full report and learn more about the impact of COVID-19,  consumer views and why now is the time to consider telematics.

Download the report

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