How can telematics technology improve the management of motor vehicle risk

Abstract

This dissertation seeks to establish the application of Telematics-Based Insurance in Malta by researching and reviewing the opinions and perceptions of insurance professionals, corporate fleet owners and the general public. The crucial factors which make up this study were; the awareness of these types of policies within the local market, the impact that such system would have on the driver and the viability of such technology. In order to validate the results obtained, key stakeholders were consulted, being insurance principles, brokers, corporate fleet owners and ultimately the general public. The views of the mentioned stakeholders were analysed in order to draw conclusion and make recommendations. Alongside existing literature, the use of semi-structured interviews and questionnaires compelling evidence and findings were generated. A prominent concern is that although the local market is technologically highly aligned, there still was evidence of a lack of awareness regarding the usage of Telematics-Based Insurance which can potentially allow motorist and fleet owners to make savings on insurance costs. Furthermore there was a misconception about the privacy consciousness attached to such policies. One of the major recommendations of this study is for insurers to consider introducing more of such policies in conjunction with other personal lines policies so to make parents of young drivers more aware, thus expecting that parents accept well this policy since it provides added security features of their children. Also, due to some concerns on possible privacy violations it would be sound for insurers to address such concerns by providing full explanations and provide peace of mind that the motorists’ privacy is not violated with such policies.