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Insurance Telematics Explained

The basic idea behind telematic insurance is that specific use of a vehicle and the driver's behaviour in terms of how the vehicle is driven are monitored in real time, and this information is transmitted from a device in the vehicle to an insurance company. The insurance company can then assess the risk of that driver having an accident and tailor their insurance premium to the individual.

Read on to find out how insurers, brokers and drivers can harness the benefit of machine-to-machine communication and all benefit from insurance telematics.


The most obvious advantage for drivers is reduced cost and more tailored insurance premiums, which will be based on how the individual actually drives, rather than the average attributes of a driver’s age group or profile.
Insurance telematics customers can also benefit from further added value services, including;

  • Mileage and fuel budgeting
  • Adopting a safer driving style to reduce the risk of having an accident
  • Changing driving style to achieve fuel economy
  • Route management to avoid accident hot spots
  • Stolen vehicle recovery services
  • Safe parking


Insurance telematics is a huge opportunity for insurers. The ability to improve overall risk performance through segmenting drivers by how they drive, when they drive, and where they drive, is an exciting area for pricing and underwriting.
TRACKER understands insurance companies.. Insurers face a considerable challenge in moving to individual driver and vehicle rating in setting premiums, and in adapting their existing processes, data files and systems with the challenges and opportunities afforded by telematics. We can provide insight and experience in these areas, with staff that have developed telematic based offerings and held senior management roles within insurance.

The benefits of insurance telematics are clear for insurers through improved risk selection and pricing, reduced claims frequency, improved fraud detection, and reduced claims costs.
  • Improve claims ratios
Crash detection and alerts provide instant First Notification of Loss (FNOL) customer contact to improve third party capture and protect against fraudulent claims.
  • Improve customer attractiveness
Offer customers the potential of cheaper insurance premiums.
  • Increase your confidence in the outcomes
Data can be supplied raw , through to refined Event scoring based on TRACKERs unique “9 years of driving experience” data, through to a single adjustment based on the TRACKER Score.

For Brokers:

Countless different device providers, different insurer propositions and competing broker offerings, creates a daunting telematic marketplace for brokers. TRACKER can assist in clearing that fog away by complementing your experience in distribution and customer service, with our knowledge of devices, installations, data analysis, customer feedback and system integration.

  • Differentiate your offering
With insurance telematics, brokers are no longer limited to offering customers a “single premium for a single device from single insurer based on a single proposition”. Now, you can take data from different devices, ranging from professionally installed black boxes, to customer installed, to smartphones,  and produce data analysis for pitching to insurers and develop bespoke schemes using different devices.
  • Improve claims handling
Device based triggers can inform your claims handling before your customer has even called you. Turning a passive inbound process into a proactive outbound one.


If you are a broker or an insurer, find out how TRACKER can help you develop your insurance telematics offering by e-mailing insurance@tracker.co.uk

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