RAC Telematics to deliver powerful message to insurance sector

RAC Telematics MD Nick Walker is set to deliver a compelling message to the insurance industry this autumn, attending several events throughout the UK and Europe to talk about the potential for telematics to create a mass market model for usage based insurance (UBI).

Walker joined RAC Telematics at the start of the year and is now focussing on the potential to offer a much more comprehensive set of data, looking at how both the driver and their vehicle behave, providing live updates. This will enable insurers to base policies on dynamic, real time driver information, rather than relying on retrospective driver history.

Walker says: “Nobody else in the market is able to offer what we are now talking about, simply because they don’t have the range of data that the RAC has access to.”

Walker will explain how UBI can move away from being a product sold purely to young drivers, to something adopted by the mass market with the support of telematics, and become a more profitable model.

He says: “For a long time UBI (usage based insurance) has been focussed mainly on young drivers, but has a high churn rate of customers, something like 50 to 60%.

“Traditionally young drivers will take out a policy when they pass their driving test and then change after their first year to find a better deal.

“The focus of the policy is on driver behaviour, but that doesn’t tell you a lot, because they have no history and you don’t know what kind of drivers they are, which of course is why they are a bigger risk.

“But if you understand how the vehicle is behaving as well, the stress on the brakes, the average speeds, the health of its components and parts, this will tell you much more about how the policy holder is driving the car. We can provide that vehicle health data to match up with driver behaviour.

“The third element, which makes this an extremely powerful tool, is true First Notification of Loss, or FNOL. With the software we now have and the analysis of the data, we are able to tell exactly what has happened in the case of an accident, including speed, direction and location.

“But even more, at slow speeds, we can determine whether the vehicle has been involved in an accident, or if it has hit a speed bump or kerb, with an accuracy rate of 92%. As a result, disputes over liability for accidents at slow speeds could be a thing of the past.

“The RAC is the only provider with access to this combination of data, and it will transform the potential for UBI to go to the mass market.”

Nick Walker will be speaking at the following events:

  • Telematics Insurance Europe, London, September 29 - 30
  • Telematics for Insurers, London, October 28
  • TU: Automotive Europe, Stuttgart, November 2 - 3
  • Telematics for Usage Based Insurance, Berlin, November 5

For more information about RAC Telematics please visit the RAC Business website.

ENDS

Press office team

Press office team

For journalist enquiries only

Share

Latest News

Website preview
Second month of lower fuel prices as petrol and diesel fall by 2p a litre in April
RAC calls for further cuts at the pumps to reflect lower wholesale costs
media.rac.co.uk
Website preview
RAC rolls out mechanic apprenticeships nationwide in industry first
Students across England can now become patrols or RAC Mobile Mechanics through the ‘RAC Academy’
media.rac.co.uk
Website preview
Drivers planning a million more leisure trips by car this May Day bank holiday
The number of getaway journeys on major roads is up on last year despite Easter still fresh in people’s minds
media.rac.co.uk

Get updates in your mailbox

By clicking "Subscribe" I confirm I have read and agree to the Privacy Policy.

About RAC Media Centre

The RAC Media Centre provides journalists and news outlets with the latest motoring-related news, comment, data and research.

The RAC is an iconic UK brand, and provides complete peace of mind to nearly 14 million UK private and business drivers - whatever their motoring needs. As well as its premium nationwide breakdown assistance service – with an expert branded patrol workforce attending more than two million breakdowns every year – and European breakdown assistance products, it offers a wide range of market-leading products across insurance, legal services, vehicle inspections and service, maintenance and repair. Included in this is the first-of-its-kind nationwide Mobile Mechanics service which brings the garage to homes and workplaces. 

At the forefront of new solutions for business fleets and consumers, the RAC’s breakdown service is electric-ready with mobile EV charging technology and be called on using myRAC – its all-in-one route planner, fuel finder and breakdown reporting app