The Chartered Insurance Institute launches telematics consultation following inquest

On 27 May 2026, the Chartered Insurance Institute (“CII”) launched a national consultation seeking input from members, stakeholders, and public interest groups on the role insurers can play in improving road safety for young drivers.

This consultation follows the inquest touching upon the deaths of Harry Purcell and Matilda Seccombe, who were involved in a fatal road traffic collision on 21 April 2023. The driver, aged 17, had passed his driving test only weeks earlier, on 10 March 2023. 

In the course of the inquest, HM Acting Area Coroner for Coventry and Warwickshire, Linda Karen Hadfield Lee, issued a Regulation 28 Report to Prevent Future Deaths. The report raised a number of concerns and, in relation to the Association of British Insurers (ABI) and CII, stated that:

“Industry practice does not appear to include a consistent method for identifying when a named driver arrangement may conceal higher-than- expected use by a young driver, with implications for risk assessment and safety. There is also no uniform approach to how telematics is applied or the need for its use communicated to young drivers. The inquest noted uncertainty about how clearly insurers and brokers explain the safety-related aspects of telematics to young drivers or their families, which may influence decisions made when arranging insurance”¹.

The issues identified reflect broader concerns regarding risk among newly qualified drivers. Evidence indicates that around one in five drivers are involved in a car crash within a year of passing their test. Brake, the road safety charity, highlights that the younger the driver, the more likely they are to be involved in a crash caused by speed. 

Telematics – current position

Telematics technology, which monitors driving behaviour, has been recognised as a potential tool to mitigate these risks. The use of telematic-based insurance policies has grown significantly, with approximately 1.66 million policies in 2022. 

However, the current position is characterised by inconsistency between pricing and safety objectives:

• There is no uniform approach across insurers in how telematics is deployed or how driver behaviour is scored.
• Communication to policyholders varies, with evidence that some drivers do not fully understand how telematics policies operate or how their behaviour is assessed.
• Pricing structures play a significant role in uptake. Consumer Intelligence research indicates that young drivers may face a £2,000+ premium differential between telematics and non-telematics policies, effectively limiting genuine consumer choice.

Consumer Intelligence analysis of 6,868 insurance quotes found that 17–19-year-olds faced a median £2,172 increase for opting out of telematics, with 83% finding telematics to be the only affordable option. This has led to concerns that the market may be creating so called “telematics refugees”—drivers who feel compelled into monitored policies due to price, but who disengage due to mistrust or frustration². 

What the CII is seeking from insurers

The consultation signals a shift away from purely price-driven telematics models towards a more consistent, safety-focused framework.

The CII is seeking views on how insurers can:

• Adopt a more consistent and transparent approach to telematics products;
• Clearly communicate both the operational features and safety benefits of telematics to young drivers and their families;
• Better identify and manage high-risk behaviours, including misuse of named driver arrangements; and
• Play a more active role in improving road safety outcomes, rather than solely assessing risk.

It also raises broader regulatory and policy considerations. In its response to the Coroner, the Financial Conduct Authority (FCA) noted that mandating telematics for all young drivers could materially affect pricing and potentially restrict consumer choice, particularly for those without compatible technology or limited financial means.

The consultation further invites discussion on whether young drivers’ experiences intersect with the FCA’s guidance on vulnerability (FG21/1). Relevant “drivers of vulnerability” may include low financial capability, limited financial resilience, and significant life events—such as passing a driving test or beginning employment or education requiring regular travel.

Reframing telematics: trust, choice and engagement

Alongside structural changes, there is increasing emphasis on how telematics is presented to consumers. Consumer Intelligence suggests a four-stage approach:

• Position telematics as part of a “recognised driver journey”, rather than a probationary measure; 
• Shift language from monitoring to demonstration of ability;
• Provide customers with greater control over how their driving is assessed; and
• Offer lasting recognition that follows the driver beyond a single insurer.

Their research identifies three key drivers of voluntary adoption that are often overlooked:

• Recognition – acknowledgement of safe driving behaviour
• Personalisation – assessment based on individual performance
• Control – ability to influence outcomes and metrics

Industry commentary has also suggested a more segmented approach to young drivers: removing a small proportion of persistently high-risk drivers from the road, actively improving the majority through behavioural nudges and incentives, and rewarding consistently safe drivers with competitive pricing.

Potential benefits of wider telematics rollout

For insurers and claim handlers, wider and more structured use of telematics presents several clear benefits:

• Enhanced risk assessment: Telematics enables a shift from demographic-based pricing to behaviour-based underwriting, improving accuracy.
• Improved claims handling: Driving data can assist in reconstructing accidents, supporting liability decisions and reducing fraud exposure.
• Behavioural improvements: Evidence shows that feedback-driven telematics programmes can reduce speeding and unsafe driving behaviours (with reported reductions in accident frequency).
• Potential reduction in claims frequency: Safer driving behaviours should translate into fewer and less severe collisions.

How telematics can improve young driver safety

Telematics has the potential to directly address risk through:

• Real-time feedback: Drivers receive immediate insight into unsafe behaviours, reinforcing better habits early in their driving lifecycle;
• Behavioural monitoring: Patterns such as speeding, night driving, or harsh braking can be identified and addressed;
• Parental engagement: Increased visibility for parents can support oversight and safer decision-making; and
• Incentivisation: Safer driving can be rewarded through lower premiums or improved policy terms.

Practical experience also demonstrates both the opportunities and challenges of telematics. For example, Motability previously required under-30 drivers to use its “Drive Smart” monitoring tool, offering rewards for safe driving and intervention where scores were poor. This requirement was withdrawn in May 2026, pending improvements to the system following criticism of its consistency.

Conclusion

The CII’s consultation represents a significant step in addressing concerns raised by the Coroner and clarifying the insurance industry’s role in improving young driver safety.

It highlights a clear need for greater consistency, transparency, and engagement in the use of telematics, alongside wider consideration of affordability, consumer understanding, and vulnerability.

The consultation closes on 7 August 2026, with further updates expected following publication of the CII’s findings and any resulting guidance for the industry.

1. Courts and Tribunals Judiciary (2025) Matilda Seccombe and Harry Purcell: Prevention of future death report. Available at: https://www.judiciary.uk/prevention-of-future-death-reports/matilda-seccombe-and-harry-purcell-prevention-of-future-death-report/ (Accessed: 22 June 2026)

2. Consumer Intelligence (2026) Insurance Industry Creating ‘Telematics Refugees’ as £2,000 Pricing Penalty Forces Young Drivers into Surveillance. Available at: https://www.consumerintelligence.com/articles/insurance-industry-creating-telematics-refugees-as-2000-pricing-penalty-forces-young-drivers-into-surveillance (Accessed: 25 June 2026).