Telematics is not new. Has been used in commercial vehicles, emergency services and Formula One cars for years. What is new is the technology is now being used in private cars.
A box the size of a phone is installed in a car and has the following functions:
1. GPS unit – captures when and where the car is driven.
2. High frequency motion sensor – captures how the car is driven.
3. SIM card – used to transmit data.
Cars are now being produced telematics enabled ahead of legislation making it law to install in all new cars.
Data is transmitted from the box to secure servers allowing insurers to assess how car being driven.
Companies give insurance discounts for good driving based on performance with regard to cornering, braking, speed and acceleration.
Why is this important to the Quindell business?
1. Ingenie, part of the Quindell Group provide car insurance using telematics technology. Telematics is the key to Ingenie’s impressive growth. Ingenie customers on average save £750 on their insurance. This highlights the impact telematics is having on the insurance industry.
2. ABI Research – Telematics insurance expected to increase 81% to 107 million in 2018. Quindell a first adopter have the opportunity to maximise market share of this emerging market.
3. Connected Car Solutions targeting 10 million subscribers by 2020 (10% of the market).
4. Quindell Himex have 3 active contracts in Canada and 4 pilots with insurers in the top 20 of the North American market.
Quindell are well placed to gain market share and profit from the growth in the telematics industry.