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.

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.