Telematics in the insurance industry is a sign of the changing advancements in technology that are allowing us to live busier and more ‘connected’ lives.

Choosing products and services that fit conveniently and easily into our lives is such a priority.

Consumers want choices simplified and products customised to them as unique individuals and not a group average.

We are willing to trade some of our privacy if we are rewarded with a product that is not only convenient but personalised to benefit us.

Telematics is helping to re-invent the insurance industry, allowing it to keep pace with their customers’ lifestyles by creating policy cover that reflects the risks of individual customers.

This movement from traditional policies rated on proxies to more advanced insurance solutions enabled through connected technologies is particularly evident within the motor insurance industry.

But, it won’t be long before the way in which we insure our homes, health and holiday travel will also evolve to more personalised policy cover through a convergence of behavioural data created by the Internet of Things.

>See also: Is telematics the future of car insurance?

Right now, through the use of black boxes, smartphone apps and even a 12V device that plugs in the cigarette lighter of the car, it has never been so easy for insurers and consumers to benefit from the power of telematics.

These devices gather data based on individual driving behaviour and allow insurers to tailor a policy unique to the customer.

So how do consumers feel about this?

Well that depends on who you ask and how you ask the question.

A Consumer Intelligence research study conducted earlier this year found that overall, drivers thought telematics to be ‘unnecessary’ and that they didn’t like the idea of being ‘watched’.

But, the study went on to reveal that consumers actually don’t mind their insurer having the data, as long as they do something with it which will positively impact their lives in some way.

Underlining this point, a survey, conducted on Wunelli’s behalf by Consumer Intelligence to determine driver opinions on how motor insurance premiums should be calculated.

It found that 78% of motorists think that the price they pay for insurance should be linked to their driving behaviour. 60% also think insurers should offer lower premiums to motorists who don’t use their mobiles at the wheel.

So how can insurers respond to these sentiments?

By offering telematics insurance – a concept that consumers are increasingly at ease with as their popularity grows.

Quite simply we’re getting to a point where everyone knows someone with a telematics policy.

>See also: The future of driverless cars and data security

If you talk to consumers about using their data to set insurance premiums, of course it’s going to be a challenge.

But, if you show the ways in which their driving experience will be improved and benefits delivered to them as individuals you have a much better chance of getting them engaged.

Advanced technology and data collection will help us shift perceptions and propositions.

Rather than the grudge purchase so many of us feel car insurance is, the opportunity is there to create a new kind of service that speaks to the modern consumer.

What’s clear is that we need a real shift in consumer perception around telematics so that it’s seen as a life enabler, looking to some of the market disruptors already using consumer behavioural data with great success.

Sourced by Selim Cavanagh, senior VP, telematics at Wunelli