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The Floow - November 22nd, 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 provide all-important 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)

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.

The Floow has undertaken research to understand the impact of these market changes on consumer preferences and attitudes towards User Based Insurance. This paper considers the results from that research.

Executive Summary

The COVID-19 pandemic has seen a shift in mobility, but most respondents do not believe these changes are permanent. 56% of our survey respondents believe that their average miles will increase post-COVID, while night-time and morning commuting times remain up to 30% lower when compared to pre-COVID levels.

There is an increased interest in telematics and Usage-Based Insurance (UBI), as 34% 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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45% of survey respondents don’t have a problem sharing journey data with their insurer, with over 80% of respondents in each age group under 54 willing to consider sharing all or some journey data. 

Consumers aren’t just looking for premium discounts. With only 37% 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 over 80%, as there is no longer a requirement for a fitted device.

Rewards can not only deliver improvements in driver behavior, 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 Ratio (CR).


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.

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