Strategy consulting firm PTOLEMUS Consulting Group has published a report on Insurance Telematics.
At present the Pay As You Drive (PAYD) market has over 2 million customers. Ptolemus expects it to be multiplied by 50 by the end of the decade. Telematic-enabled policies will then generate €50 billion in premiums to insurers.
Consumers worldwide will be able to save up to 50% on their car insurance premiums.
Frederic Bruneteau, Managing Director, describes the impact for insurers:
“The Internet is revolutionising all sectors and this is now the turn of the auto insurance industry.
By enabling insurers to build their pricing based on the actual, real-time behaviour of drivers, PAYD redefines entirely the way to charge for motor risks.
Underwriters must adapt to the new connected way of doing business.
After Italy, the wave is now reaching the UK and the US, where Moody’s recommended underwriters to “adopt it sooner than later”. We expect all developed countries to embrace the new model, with local technology- and business variants.”
