UK insurers must tackle privacy concerns to unlock growth in telematics
Over a quarter of UK consumers suggested that a telematics/usage-based insurance (UBI) policy gives them privacy concerns, a GlobalData survey has found. Meanwhile, the telematics provider IMS has warned that insurers risk stalling the adoption of UBI policies in 2026, unless they address consumer concerns around data privacy and transparency.
GlobalData’s 2025 UK Insurance Consumer Survey found that 27.6% of UK consumers cited data privacy as a key concern associated with UBI policies. The findings suggest that apprehension around how driving data is collected, stored, and used remains widespread, limiting consumer willingness to engage with telematics-led products, even as affordability pressures intensify across the motor insurance market.
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Meanwhile, the telematics provider IMS has warned that insurers risk slowing the expansion of personalised pricing and UBI offerings in 2026, unless concerns around transparency and data usage are addressed. IMS noted that while telematics has been positioned as a tool to improve risk selection and support loss ratio management, uptake in the UK remains muted relative to several European peers. According to IMS, this reflects a trust deficit, rather than technological constraints, with many motorists unconvinced that the trade-off between data sharing and premium savings consistently works in their favour.
Adoption data from GlobalData’s 2024 Emerging Trends Survey reinforces this disparity. The survey found that just 5.8% of UK consumers currently hold a telematics-based insurance policy. This compares unfavourably with Italy (17.9%), Spain (13.1%), Germany (9.4%), and France (9.3%). Moreover, the global average adoption rate stands at 14.4%, highlighting the UK’s relative underperformance, despite being a mature and digitally-advanced insurance market.
While telematics and UBI remain strategically-important tools for insurers seeking more granular pricing and improved underwriting performance, persistent concerns around data privacy and transparency continue to constrain consumer uptake in the UK. Without clearer communication of the value proposition and stronger reassurances around data use, insurers may struggle to scale personalised pricing models at pace, even as international markets move further ahead.
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By GlobalData
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