(Bloomberg) — Auto insurance may be on the brink of an incursion from mobile-phone and technology companies. Telefonica SA’s O2 unit — one of the first mobile operators in Britain to offer car insurance — expanded its product line in February to include telematics boxes, which track people’s driving habits and can lead to cheaper premiums for youngsters.
That’s stoking speculation that a wave of fintech companies will push into the market and disrupt the way insurers interact with customers. Cell-phone or Internet companies could, for example, use the massive amount of data they hold on their customers to sell them car insurance, bypassing traditional brokers and price-comparison websites.?
Author: Rebecca Penty and Oliver Suess