A SWOT analysis for the introduction of telematics based insurance in Malta for corportate fleets

Abstract

This dissertation seeks to establish the viability of fleet Telematics-Based Insurance in Malta by investigating the perceptions of insurance operators, tracking service providers and corporate fleet owners. At its core, the study involved a SWOT Analysis to appraise Telematics-Based Insurance against traditional premium rating systems. From a more macro point of view, it weighed external forces acting for and against implementation locally. In validating results, key stakeholders were consulted, being insurance principals, agents and brokers, along with tracking providers and the ultimate customer of such alternative rating systems, the fleet owner. Their views were analysed to draw conclusions and recommendations. Through support from readily available information and semi-structured interviews, compelling data and findings were gathered. A prominent concern is that although locally people are becoming quite technology oriented, there is little awareness of how this can be linked to save insurance costs. One of the main recommendations of the study is for tracking providers to create awareness around such telematic monitoring devices and their multiple benefits, those logistical and insurance related. This should then instigate fleet owners themselves to demand such insurance. In turn, the local insurer should be enticed to offer such insurance schemes as enhanced fleet management and monitoring translate into an improved insurance risk. Research yielded that if there is cooperation and commitment between the aforementioned stakeholders, and extensive analysis is conducted to link driving data with claims history, the risk profile of each fleet owner will better represent the true risk exposure.