2nd May 2014 10:41
LONDON (Alliance News) - Trakm8 Holdings PLC Friday said it has been appointed as Direct Line Group PLC's sole telematics supplier of self-install devices for the insurer's DrivePlus Plug-in device.
The partnership confirms the significant hardware order Trakm8 reported on January 13, and its shares rose early Friday in response.
Telematics devices are fitted to cars and collect data on how well they are driven so that insurers can personalise insurance. The devices could be particularly useful to inexperienced or young drivers, as well as those who don't drive often and have a low annual mileage, who currently face higher premiums due to rates being calculated based on statistics for average drivers.
In a statement, Trakm8 said it is working closely with the insurer's other telematics supplier, The Floow, a specialist UK-based telematics analytics and software company, to deliver the analysis and develop the feedback tools.
Trakm8 is supplying hardware based on their next generation telematics device and the first of a new family of products called T10. The T10 Micro is a fully functional telematics tracking device with CANbus communications.
Executive Chairman said the deal is "a key milestone" for Trakm8.
"This proposition accelerates the awareness of telematics as an effective tool to improve driving skills and reduce fuel costs. We look forward to building on this relationship further as consumers adopt the Plug-in device."
Direct Line also reported first-quarter results Friday, saying gross written premiums decreased to GBP949.3 million from GBP1.01 billion a year earlier.
Trakm8 shares were Friday quoted at 71.96 pence, up 9.0%. Direct Line shares were down 0.9% at 250.00p.
By Samuel Agini; [email protected]; @samuelagini
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