Innovation in Focus: The Great Telematics Experiment

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25 November 2013
Craig Beattie


Telematics and usage-based insurance have evolved greatly in the past few years, but it has yet to be determined whether people will willingly share personal data for financial benefits.

In the report Innovation in Focus: The Great Telematics Experiment, Celent examines the nature of telematics and usage-based insurance in the motor industry and explores what is on the immediate horizon. Celent also looks at the two principle hypotheses held by the industry regarding the future of this most prominent line of business, presented in the report as the null hypothesis and the self-selection hypothesis.

The rise of Foursquare, Facebook, and other location-based services suggests that people are willing to divulge personal data in a public forum. Will they do the same to get access to discounts for motor or auto insurance? This is the great experiment being conducted globally by the insurance industry. Put simply, we don’t know the answer yet.

“There are experienced insurance professionals with decades of experience who fervently believe the null hypothesis,” says Craig Beattie, Senior Analyst with Celent’s Insurance Group and author of the report, “Equally, there are experienced insurance professionals with decades of experience who fervently believe the self-selection hypothesis. There are others happy to wait and see how it plays out.”

The report also includes results of a survey on how receptive customers would be to real time feedback on their driving.

The report examines how telematics is evolving and explores two opposing views on its future place in personal lines insurance. This is a brief report intended as a companion to the webinar Telematics and UBI: Some Risks or All Risks?

Insight details

Content Type
Report Type
Industry Trends
Special Interest
Innovation & Emerging Technology