Innovation in Focus: The Great Telematics Experiment

Create a vendor selection project & run comparison reports
Click to express your interest in this report
Indication of coverage against your requirements
A subscription is required to activate this feature. Contact us for more info.
Celent have reviewed this profile and believe it to be accurate.
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?

Subscription required

Access to this content requires a Celent research subscription.

Subscribers should sign in to access this research.

If you are not a subscriber, register now or contact us to find out more about our subscription options.

Insight details

Property & Casualty Insurance
Subscription(s) required to access this Insight:
Insurance, >>Property / Casualty Insurance
Insight Format
Geographic Focus
Asia-Pacific, EMEA, LATAM, North America