Making telematics-rated insurance work

“The potential for telematics to revolutionise the world of motor insurance has excited insurers and technology companies across the world.  There have been pilots and trials and product launches but nowhere has telematics hit mainstream, mass market insurance.  But the times are changing with a major player in the US forging toward a countrywide roll-out and the convergence of reducing technology cost with an increasing understanding of who will benefit from telematics.”

Julian Beardsworth, Director and Expert in Telematics, EMB



Our approach to telematics

We strongly believe in the power of telematics data to discriminate motor insurance risk and believe that it is inevitably a key part of the future of motor insurance.  It also represents an opportunity for direct insurers, brokers and others to look afresh at what has become a difficult, price driven, commodity market place.  There are opportunities around new products, marketing, innovative pricing, claims handling and anti-fraud controls.  EMB’s consultancy team is uniquely well versed in telematics expertise and can offer consultancy and expertise to ensure rapid and effective development of client capability in the telematics arena.

EMB consultants include Robin Harbage who led Progressive Personal Lines through their initial telematics developments, Julian Beardsworth who was Director of Personal Lines at Norwich Union through the latter stages of their PAYD project after having earlier worked as Head of PAYD and Tony Lovick who was the PAYD actuary at Norwich Union in charge of creating the first detailed understanding of the relationship between telematics data and insurance risk.  Giving EMB the world lead in actuarial and statistical expertise in telematics-rated insurance, alongside the capability to take the numbers and the theory and provide effective commercial solutions

Making it work for you

Our clients are increasingly discussing with us how they might best embrace telematics technology and more insurers than ever are interested in understanding and exploring the possibilities of telematics. 

EMB can contribute throughout the considerations of telematics from the early investigations through the development of strategy and plans to product development and roll-out. We can add value rapidly and effectively using our specialist experience and core technical and consulting strengths.

Our services include:

• We can bring you rapidly up to speed with the latest worldwide developments. 
• In the early stages of an initiative, we can help you pragmatically assess feasibility and develop a strategic plan.
• Companies that are building a telematics proposition can draw on our capability in strategy development and creating the optimal business model.
• For companies piloting and launching telematics products EMB can support or lead technical and operational developments.

For further information about how we can help you, please click here

Our insight

There is a convergence of the economics of collecting telematics data with a growing understanding of customer propositions that work.  The clear world leader in telematics insurance is Progressive in the US which is currently engaged in a countrywide roll-out of its new product.  If Progressive can make telematics work in the US then, because it’s rating the riskiness of individual drivers, it will potentially have extensive application with no obvious barriers to exporting the technology and the approach worldwide.  Insurers need to start thinking about their response to this and, generally, how they can take advantage of the benefits offered by telematics in motor insurance.

The major obstacle to large scale success of telematics insurance to date – the cost of the technology needed to make it work – is gradually being lowered. As a result, we feel that telematics-based rating will become a standard product offer of many insurers in the next five years.

Read our briefing paper for further insight into the area of telematics-based insurance.










Contact us
For further information or to discuss the potential of telematics for your business please contact one of our resident telematics experts at info-uk@emb.com

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