Over 1 / 4 of UK customers prompt {that a} telematics/usage-based insurance coverage (UBI) coverage provides them privateness considerations, a GlobalData survey has discovered. In the meantime, the telematics supplier IMS has warned that insurers threat stalling the adoption of UBI insurance policies in 2026, except they handle client considerations round knowledge privateness and transparency.
GlobalData’s 2025 UK Insurance coverage Shopper Survey discovered that 27.6% of UK customers cited knowledge privateness as a key concern related to UBI insurance policies. The findings counsel that apprehension round how driving knowledge is collected, saved, and used stays widespread, limiting client willingness to have interaction with telematics-led merchandise, at the same time as affordability pressures intensify throughout the motor insurance coverage market.
In the meantime, the telematics supplier IMS has warned that insurers threat slowing the enlargement of personalised pricing and UBI choices in 2026, except considerations round transparency and knowledge utilization are addressed. IMS famous that whereas telematics has been positioned as a software to enhance threat choice and help loss ratio administration, uptake within the UK stays muted relative to a number of European friends. In line with IMS, this displays a belief deficit, somewhat than technological constraints, with many motorists unconvinced that the trade-off between knowledge sharing and premium financial savings persistently works of their favour.
Adoption knowledge from GlobalData’s 2024 Rising Tendencies Survey reinforces this disparity. The survey discovered that simply 5.8% of UK customers presently maintain a telematics-based insurance coverage coverage. This compares unfavourably with Italy (17.9%), Spain (13.1%), Germany (9.4%), and France (9.3%). Furthermore, the worldwide common adoption charge stands at 14.4%, highlighting the UK’s relative underperformance, regardless of being a mature and digitally-advanced insurance coverage market.
Whereas telematics and UBI stay strategically-important instruments for insurers searching for extra granular pricing and improved underwriting efficiency, persistent considerations round knowledge privateness and transparency proceed to constrain client uptake within the UK. With out clearer communication of the worth proposition and stronger reassurances round knowledge use, insurers could wrestle to scale personalised pricing fashions at tempo, at the same time as worldwide markets transfer additional forward.
