Norwich Union announced today it has signed a contract withTrafficmaster plc, the leading supplier of digital trafficinformation and intelligent in-vehicle services, for the provisionof a further 35,000 telematics “black boxes”.
This extends the contract that Norwich Union signed last year withTrafficmaster to provide additional boxes for its TelematicsProgramme. The “boxes” are at the heart of NorwichUnion’s “Pay As You Drive”TM insuranceprogramme and record the time, distance and location of avehicle’s journeys.
Norwich Union, the UK’s largest general insurer, isconducting a pilot to investigate motorists’ preference for ausage-based motor insurance product. The ongoing “Pay As YouDrive”TM and Fleet Telematics pilots launched in2004 and 2005 have proved extremely successful, enabling NorwichUnion to better understand vehicle usage and driving behaviour– providing a uniquely accurate risk assessment tool.
Simon Machell, chief executive, Norwich Union Insurance, said:“This represents the next measured step of our TelematicsProgramme. By increasing the number of boxes in our pilot, we willhave access to additional data to help ensure that any future 'PayAs You Drive'TM insurance propositions are best suitedto British motorists.
“Our learnings from our pilot are ongoing and substantial,and will shape any future 'Pay As You Drive'TM insuranceproducts by putting road safety and value at theirheart.”
As a result of the pilot, Norwich Union has gathered more than 42million miles of data - the equivalent of driving around theEarth’s circumference 1,680 times. The pilot to date hasrecorded over 10 million journeys from its 5,000 pilot customers,with an average of 8,500 miles driven per customer.
This average figure, based on one year’s worth of driving, iswell below the national average of 11,000 miles per year. Thiscould indicate that many motorists might benefit from a usage-basedinsurance product. The black box may also be helping motorists torely less on their car, opting instead to walk or cycle for shortjourneys to school, shops or work.
Stuart Berman, director of Trafficmaster technologies, commented:“This is a ground breaking initiative and we are, of course,delighted to further develop our relationship with Norwich Union.Trafficmaster leads the way in in-vehicle telematics hardware andinnovative services like Smartnav and Trackstar. The introductionof usage based services will further enhance the attractiveness ofour vehicle platform.”
RAC Auto Windscreens In-Car Services division will fit the blackboxes. Mark Hughes, RAC operations director, commented: “Weare delighted that RAC Auto Windscreens has been able to provide alogistical and technical solution to this project. RAC AutoWindscreens has established a dedicated and experienced team ofin-car installation engineers to provide this service to theautomotive industry.”
“We are proud to be associated with this pioneering project.It is essential that we continue to address the changing needs ofthe consumer and this new insurance system delivers what theywant.”
For further information, please contact:
Erik Nelsonat Norwich Union’s press office on 01603 682264 or 07989427086.
About Norwich Union Insurance
About “Pay As You Drive”™insurance
If you're a customer please visit our website at www.aviva.co.uk.