Nearly a third of pay-as-you-drive insurance policies will be based on smartphone apps rather than in-car telematics by 2020, according to app developer Wejo.
Research carried out by Wejo claims 27% of the pay-as-you-drive market will go this way within five years and be worth £1.1 billion out of a total usage based insurance market across Europe’s top five countries (including the UK) of £6.4bn.
Richard Barlow, CEO of Wejo, said: “The impact of smartphone technology on the car insurance market is the source of constant debate. With the level and accuracy of the data that we are able to collect continuously increasing, there is no doubt that those insurers that ignore mobile solutions will struggle to compete. For consumers, the growth of the smartphone-only UBI market represents a cost-effective way of getting tailored insurance quotes and policies.”
