Norwich Union announced today it has signed a contract with Trafficmaster plc, the leading supplier of digital traffic information and intelligent in-vehicle services, for the provision of a further 35,000 telematics “black boxes”.
Norwich Union announced today it has signed a contract with Trafficmaster plc, the leading supplier of digital traffic information and intelligent in-vehicle services, for the provision of a further 35,000 telematics “black boxes”.
This extends the contract that Norwich Union signed last year with Trafficmaster to provide additional boxes for its Telematics Programme. The “boxes” are at the heart of Norwich Union’s “Pay As You Drive”TM insurance programme and record the time, distance and location of a vehicle’s journeys.
Norwich Union, the UK’s largest general insurer, is conducting a pilot to investigate motorists’ preference for a usage-based motor insurance product. The ongoing “Pay As You Drive”TM and Fleet Telematics pilots launched in 2004 and 2005 have proved extremely successful, enabling Norwich Union to better understand vehicle usage and driving behaviour – providing a uniquely accurate risk assessment tool.
Simon Machell, chief executive, Norwich Union Insurance, said: “This represents the next measured step of our Telematics Programme. By increasing the number of boxes in our pilot, we will have access to additional data to help ensure that any future 'Pay As You Drive'TM insurance propositions are best suited to British motorists.
“Our learnings from our pilot are ongoing and substantial, and will shape any future 'Pay As You Drive'TM insurance products by putting road safety and value at their heart.”
As a result of the pilot, Norwich Union has gathered more than 42 million miles of data - the equivalent of driving around the Earth’s circumference 1,680 times. The pilot to date has recorded over 10 million journeys from its 5,000 pilot customers, with an average of 8,500 miles driven per customer.
This average figure, based on one year’s worth of driving, is well below the national average of 11,000 miles per year. This could indicate that many motorists might benefit from a usage-based insurance product. The black box may also be helping motorists to rely less on their car, opting instead to walk or cycle for short journeys to school, shops or work.
Stuart Berman, director of Trafficmaster technologies, commented: “This is a ground breaking initiative and we are, of course, delighted to further develop our relationship with Norwich Union. Trafficmaster leads the way in in-vehicle telematics hardware and innovative services like Smartnav and Trackstar. The introduction of usage based services will further enhance the attractiveness of our vehicle platform.”
RAC Auto Windscreens In-Car Services division will fit the black boxes. Mark Hughes, RAC operations director, commented: “We are delighted that RAC Auto Windscreens has been able to provide a logistical and technical solution to this project. RAC Auto Windscreens has established a dedicated and experienced team of in-car installation engineers to provide this service to the automotive industry.”
“We are proud to be associated with this pioneering project. It is essential that we continue to address the changing needs of the consumer and this new insurance system delivers what they want.”
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For further information, please contact:
Erik Nelson at Norwich Union’s press office on 01603 682264 or 07989 427086.
About Norwich Union Insurance
- Norwich Union is the UK's largest insurer with a market share of around 14 per cent
- With a focus on insurance for individuals and small businesses, Norwich Union insures:
- One in five households
- One in seven motor vehicles
- Around 800,000 businesses - Norwich Union products are available through a variety of distribution channels including brokers, corporate partners such as banks and building societies and Norwich Union Direct.
- Aviva, Norwich Union’s parent company, recently announced its acquisition of the RAC. The acquisition brings together the RAC's powerful brand and customer base with the expertise and leading position in motor insurance of Norwich Union Insurance.
- Norwich Union's news releases and a selection of images are available on the Aviva internet press centre at www.aviva.com/media.
- An ISDN facility is available for studio quality broadcast. Call the press office on 01603 682264
About “Pay As You Drive”™ insurance
- Norwich Union Insurance Limited is licensed under European patent application numbers 97904096.1 and 01303501.9. Licensed from Progressive Casualty Insurance Company, USA and is proprietor of European patent (UK) number 0700009.
- Progressive (NYSE:PGR), with headquarters in Mayfield Village, Ohio, is the fourth largest motor insurance company in the US. In business since 1937, the company provides all drivers in 48 US states and the District of Columbia with competitive rates and 24 hour, in-person and online services.
- IBM and Orange have partnered with Norwich Union to deliver the “Pay As You Drive”™ insurance technology.
Trafficmaster
- Founded in 1988, Trafficmaster Plc is the UK’s leading journey management company providing high quality satellite navigation, traffic data and vehicle tracking systems.
- Trafficmaster’s traffic information is derived from its unique state-of-the-art network of nationwide static roadside sensors and transmitters that gather and distribute traffic data from over 8,000 miles of motorway and trunk routes. Traffic data is then delivered to the customer through a number of screen or speech-based receivers. These include a variety of in-car products and services that include its satellite navigation - Smartnav, Trafficmaster Monitor, YQ², Oracle and Freeway units. Traffic information can also be obtained by phoning the 1740 service, which is run in partnership with the RAC and the UK’s main mobile phone operators.
- The traffic data provided through Trafficmaster RDS TMC is used, in conjunction with third party satellite navigation systems, to route drivers around congestion. The data is broadcast on licensed radio networks owned by GCap Media Plc and Chrysalis Radio and is provided to original equipment manufacturers (OEMs) or direct to automotive manufacturers.
- For more information please visit www.tmc.co.uk or www.trafficmaster.co.uk