A GlobalData survey reveals that over 25% of UK consumers have privacy concerns about telematics/usage-based insurance (UBI) policies. IMS warns that insurers risk stalling UBI adoption in 2026 unless they address data privacy and transparency issues. Concerns around data collection, storage, and usage limit consumer willingness to engage with telematics products.

GlobalData’s 2025 UK Insurance Consumer Survey shows that 27.6% of UK consumers cite data privacy as a major concern with UBI policies. This apprehension hinders consumer interest in telematics-led products despite affordability pressures in the motor insurance market. Insurers risk slowing the expansion of personalized pricing and UBI offerings without addressing transparency and data usage concerns.

Adoption data from GlobalData’s 2024 Emerging Trends Survey indicates that only 5.8% of UK consumers currently have telematics-based insurance policies. This low adoption rate contrasts with higher rates in Italy, Spain, Germany, and France. The UK lags behind in telematics uptake despite being a mature and digitally-advanced insurance market.

Despite the strategic importance of telematics and UBI for insurers, concerns about data privacy and transparency continue to hinder consumer uptake in the UK. Without clearer communication of the value proposition and stronger reassurances around data use, insurers may struggle to implement personalized pricing models efficiently. International markets are moving ahead while the UK faces challenges in scaling personalized pricing models.

Read more at Yahoo Finance: UK insurers must tackle privacy concerns to unlock growth in telematics