In the United Kingdom, the new concept of Telematics Insurance has helped cut car casualties among 17 to 19 year olds by 35 percent, clearing the way for mass-market adoption of this ground-breaking technology.
Here in Ghana, Vanguard insurance has brought this novel concept into the rapidly growing non-life insurance industry, and us making strenuous efforts to adapt it to the peculiarities of the market it operates in here.
Telematics is car insurance where a small box is fitted to your car. The black box measures various aspects of how, when and where you drive. This data can be used to calculate a personalised renewal quote, or in services like the Accident Alert and Theft Recovery.
In the UK where it was invented Telematics has enabled car casualty rates among 17 to 19 year old drivers compared to 16 percent for the entire driving population. The one major difference between young drivers and their older counterparts is telematics insurance with four in five young drivers estimated to have a telematics policy currently.
Data suggests telematics insurance has done more to cut accident risk than other road safety initiatives aimed at the young driver market. Now there is a drive to extend the benefits of telematics insurance into the mass consumer market with telematics policies and data collection solutions for specific customer segments, each lowering in cost to the insurer s the driver risk lowers.
Vanguard Assurance has introduced telematics insurance into the Ghanaian market, at least partially, using the device to track locations of accident cars which are covered by the company’s motor insurance policies. They have not yet been able to gather statistics as to whether the use of the device can help them cut car casualties as it has done so well in the UK market. However by tracking the locations where cars covered by its policies have had an accident improves the efficiency and accuracy of the due diligence and verification investigations necessary to assess the authenticity of a claim.
Eventually, Vanguard will be able to compile statistics on the effects of telematics on its motor insurance portfolio. Vanguards competitors will be aiming to obtain the results of that research which will guide them as to whether it is worth entering this potential new sub-segment.
By Toma Imirhe & Elliot Williams