RSSCtrack is launching a telematics solution for vehicle insurers in the UK to rate how, when, where and by whom a vehicle is driven. The company, a leading provider of vehicle tracking solutions in the UK, says that Ctrack Intelligent Insurance offers providers an alternative means of determining individual vehicle premiums, following a ruling by the European Court of Justice in March this year that prevents gender being taken into account as a risk factor.
Risk is currently calculated by insurance companies based on generic data that only shows an average risk per group, which means that everyone in a specific group pays the same premium, whether they are better or riskier drivers. Female drivers have traditionally paid a lower monthly premium than male drivers, because generic statistics show that male drivers are involved in more accidents.
Johan van der Merwe, director of insurance telematics at Ctrack, commented: “Ctrack Intelligent Insurance addresses the issues created by the ruling, which underlines the importance of defining risk in other, more effective ways. Our solution will not only provide the data for insurers to rate drivers, but enable them to interpret the data as well.”
He believes the very nature of the solution will create a culture of high-level social interaction between insurers and consumers, where premiums are determined by insurers according to the way vehicles are driven.
“Insurers should only determine risk based on distance, speed, time of day and driving attitude. Ctrack Intelligent Insurance proactively ensures that drivers exhibit safety conscious behaviours when they step into their vehicle. There will be no more arguments about the main driver, should an accident occur, and insurance conditions can be relaxed for drivers with a good driving profile.
“We envisage that our telematic solution will revolutionise insurance risk calculation, the nature of the relationship between the insurer and the driver and ultimately the way vehicles are driven. We are moving away from the era of insurance being a grudge purchase, and entering an era where premiums will be based on actual driver behaviour,” van der Merwe concludes.
Risk is currently calculated by insurance companies based on generic data that only shows an average risk per group, which means that everyone in a specific group pays the same premium, whether they are better or riskier drivers. Female drivers have traditionally paid a lower monthly premium than male drivers, because generic statistics show that male drivers are involved in more accidents.
Johan van der Merwe, director of insurance telematics at Ctrack, commented: “Ctrack Intelligent Insurance addresses the issues created by the ruling, which underlines the importance of defining risk in other, more effective ways. Our solution will not only provide the data for insurers to rate drivers, but enable them to interpret the data as well.”
He believes the very nature of the solution will create a culture of high-level social interaction between insurers and consumers, where premiums are determined by insurers according to the way vehicles are driven.
“Insurers should only determine risk based on distance, speed, time of day and driving attitude. Ctrack Intelligent Insurance proactively ensures that drivers exhibit safety conscious behaviours when they step into their vehicle. There will be no more arguments about the main driver, should an accident occur, and insurance conditions can be relaxed for drivers with a good driving profile.
“We envisage that our telematic solution will revolutionise insurance risk calculation, the nature of the relationship between the insurer and the driver and ultimately the way vehicles are driven. We are moving away from the era of insurance being a grudge purchase, and entering an era where premiums will be based on actual driver behaviour,” van der Merwe concludes.
