Ctrack is launching a telematics solution for vehicle insurers in the UK to rate how, when, where and by whom a vehicle is driven. Ctrack Intelligent Insurance offers providers an alternative means of determining individual vehicle premiums, following a ruling by the European Court of Justice in March this year that prevents gender being taken into account as a risk factor.

Risk is currently calculated by insurance companies based on generic data that only shows an average risk per group, which means that everyone in a specific group pays the same premium, whether they are better or riskier drivers. Female drivers have traditionally paid a lower monthly premium than male drivers, because generic statistics show that male drivers are involved in more accidents.

Johan van der Merwe, director of Insurance Telematics at Ctrack, commented: “Ctrack Intelligent Insurance addresses the issues created by the ruling, which underlines the importance of defining risk in other, more effective ways. Our solution will not only provide the data for insurers to rate drivers, but enable them to interpret the data as well.”

“Insurers should only determine risk based on distance, speed, time of day and driving attitude. Ctrack Intelligent Insurance proactively ensures that drivers exhibit safety conscious behaviours when they step into their vehicle. There will be no more arguments about the main driver, should an accident occur, and insurance conditions can be relaxed for drivers with a good driving profile,” explains van der Merwe.

Ctrack Intelligent Insurance also contributes to social benefits such as reduced fuel usage, less accidents and therefore fewer road deaths. For example, Ctrack Intelligent Insurance will indicate whether a specific road speed limit was violated. The accelerometer in the device will also indicate any swerving, harsh cornering or braking, and excessive acceleration. The insurers will also benefit from a reduction in fraudulent claims and vehicle theft with greater clarity of where, when, why and how accidents and theft occur.

“We envisage that our telematic solution will revolutionise insurance risk calculation, the nature of the relationship between the insurer and the driver and ultimately the way vehicles are driven. We are moving away from the era of insurance being a grudge purchase, and entering an era where premiums will be based on actual driver behaviour,” van der Merwe concludes.