New Offerings

Pricing and underwriting

Our new customer offerings, such as our telematics black box and smartphone apps, are helping us to improve our pricing models.

In June 2013, we moved from a test and learn phase to launching our telematics propositions on our own motor brands, Direct Line, Churchill and Privilege. This included our black box solution for young drivers aged 17 to 25, and our downloadable app available to all ages. We are now selling approximately 400 telematics policies a week and have sold 12,000 to date. This represents a growing proportion of our new motor business and we believe telematics has an increasingly important role to play in motor insurance, not just with young drivers but across the market.

12,000 live telematics devices to date

See more on how we deliver value through our business model

Timely updates Weather response
Telematics customers: a young couple with their mobile phones

Benefits to young drivers

Young drivers as a high-risk, high-premium group are expected to gain the greatest benefit from telematics.

A mechanic fitting telematics box to a car

We are seeing that around one-in-five Direct Line new policies taken out by under 25s over the phone have selected telematics. This also allows feedback to customers on their driving, which is anticipated to reduce the likelihood of accidents and improve safety on our roads. This is a really positive step and will help with our ongoing campaign to the UK Government to contribute to an improvement in young driver safety.

Telematics process explained from fitting our black box to saving money on car insurance
Telematics customers checking their score on their smartphones

Our extensive data and large customer base mean we, alongside specialist partners, are well positioned to capitalise on this growing market. To date, we have gathered 22 million miles of customer data, giving us a more accurate picture of our customers, how they use their cars, and what cover is suitable for them. Once we have analysed this data over a period of time, we will have the ability to price and underwrite more accurately.