8th Jul 2014 12:49
LONDON (Alliance News) - Direct Line Insurance Group PLC Tuesday said it has bought a 15% equity stake in UK-based telematics service provider, The Floow.
Direct Line said The Floow has a rapidly growing client base in the insurance and related market sectors.
"As telematics adoption increases, this investment supports the group's strategic aim of being a leading operator in this area," the company said in a statement.
The Floow has been supplying smartphone applications and telematics data analytics for Direct Line since last year.
The auto insurance industry is increasingly interested in the use of telematics, which means that data like driving performance and speed can be collected and transmitted back to the insurers. They could then use this data to offer lower premiums to safe drivers, or providing tailored feedback to new drivers on improving their driving performance. Telematics can also be used by road safety organisations, which can use data collected on things like traffic flow, traffic behaviour and weather conditions.
Shares in the insurer were down 1.3% at 277.40 pence Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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