Insurance companies are set to monitor motorists' driving habits through a small plug-in device in a bid to reward good drivers and punish bad ones.
The insurance box, by SSP, is an on-board telamatics device that uses sensors to measure driving behaviour, awarding drivers with an individual score, which is then sent to the insurance company.
Drivers can access their score via a personalised online dashboard which gives feedback on how to improve their driving habits and maximise savings.
It measures behaviour including driving at night, driving smoothness, reckless behaviour and other peripheral factors such as journey lengths, congestion, black spots and route.
According to an SSP company statement, the technology will ultimately lower premiums for good drivers while introducing a fresh competitive edge for insurance companies,
New usage-based insurance schemes are set to disrupt the insurance industry after QBE, the nation’s largest international general insurance and reinsurance group, and NIA Underwriting Agency, launched Insurance Box, the first Australian insurance product offering in-car telematics.
SSP’s core insurance platform, together with its UK-based telematics partner Wunelli, has enabled Insurance Box to integrate with its internal and external partners to create the device.
Usage-based insurance in Australia has an estimated current potential of at least 7 per cent of the private motor market, according to a recent report by Morgan Stanley.
The report said smaller ‘challenger’ brands would look to disrupt a market made up of large and established insurers, which will in turn need to react quickly to maintain profitability by adopting the new technology.
SSP’s Australian managing director, Michael Clarke, said, "The speed with which QBE and NIA have been able to launch Insurance Box is another demonstration of SSP’s commitment to investing in innovation and providing insurers with the tools they need to compete effectively in a rapidly modernising industry," he said.
“Our capability helps clients integrate quickly and seamlessly with telematics providers, allowing them to differentiate themselves in a highly competitive marketplace.
"With the latest technology in place and usage-based insurance set to grow rapidly over the next few years, Insurance Box looks set to benefit from its market-leading proposition.”