A survey of US auto insurance policyholders shows that more than 75 percent would happily share driving data gathered through telematics systems if it would help reduce their premiums.
According to the survey, which was conducted by Lynx Research Consulting for LexisNexis Risk Solutions, 57 percent of policyholders are comfortable sharing information about events that led to traffic accidents. By comparison, only 29 percent of respondents were comfortable with social networking sites storing personal information.
Some insurance companies have begun to use data collected from telematics systems tohelp define insurance rates. But the practice remains limited as there are still relatively few cars equipped with telematics systems.
LexisNexis said this will change, however. According to market researchers iSuppli, 84 percent of all new cars will have telematics systems on board by 2016, up from a mere 19 percent in 2008.
The LexisNexis surveyfound that 57 percent of policyholders felt that insurance rates should be determined by actual driving data. “The survey findings show tremendous receptivity to allowing insurance companies to base rates on driving behavior,” said Stephanie Stevens, director of marketing and product development for telematics at LexisNexis Risk Solutions.
The web-based survey polled 3,472 US residents.
LexisNexis is a global business information and solutions company. It is part of the Reed Elsevier publishing group.