Give a little info, get a little discount

A new insurance company plans to offer lower premiums to good drivers by monitoring their journeys.

Car insurance is a tricky market to operate in, because companies are forced to go with only the broadest strokes of information in trying to work out how risky a customer is – age, career, and, despite the ECHR ruling it illegal last year, gender – so that they can correctly price premiums. For older drivers, they also have information about previous claims, but when it comes to insuring new drivers that isn't available. As a result, premiums for young drivers tend to be high across the board, with little option but to buy the cheapest car available and wait for them to come down.

Insurance company Young Marmalade tries another way around the problem: by monitoring the driving habits of customers. TotalInvestor reports:

When you purchase a low-powered car from Young Marmalade, the free installation of a black box can cut your insurance premiums into half. By monitoring the driving behaviour such as acceleration, braking, what time of the day the car was driven and at what speed, Young Marmalade provides affordable telematic insurance premiums.

The company calls the package "Intelligent Marmalade", and it does seem to be an ingenious way around the catch-22 for young drivers, who can't get low premiums until they can prove they're safe, but can't prove they're safe until they pay for car insurance. The company claims it can save the riskiest group, young men, almost £4,500 a year.

The only downside is that, well, it's a bit creepy. Despite growing awareness – and, amongst the age group Young Marmalade targets, acceptance – of the sort of tracking performed online by companies like Facebook and Google, for the most part that has yet to translate into a similar attitude offline. While services like Foursquare and Facebook Places allow users to "check-in" with their location, they are still required to actively opt-in. The information Young Marmalade use to determine whether or not a car is being driven safely is extremely close to what would be required to track its location at all times (depending on whether or not turns are picked up).

Yet this is representative of a growing trend in the insurance industry, because fundamentally, if a company can offer thousands of pounds for a little privacy invasion, then there are going to be people to take them up on it. Improving the quality of information available to both parties should improve the efficiency of the market, which would be good for everyone. Just cross your fingers and hope that the data is kept securely.

Via Marginal Revolution

Police in Nice gaze at a bank of video screens. Could this be the insurance company of the future? Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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