Predicted rise in insurance premiums fuels 25 per cent growth in take-up of Cybit's unique Telematics Enabled Fleet Insurance (TEFI) products

  • Fixed fleet insurance premiums for up to 3 years
  • Profit share of up to 16 per cent

Cybit, the UK's leading online Telematics Service Provider (TSP), has announced a 25 per cent increase in take-up for its Telematics Enabled Fleet Insurance (TEFI) offering in the last three months. The Haulage and Distribution sectors have been the quickest to take advantage of the new TEFI offering, which allows businesses with fleets to lock down insurance premiums for up to three years in the face of rises in insurance costs. TEFI also gives fleets the potential to earn a profit share of up to 16 per cent per annum, subject to meeting agreed claims experience targets.

The 25 per cent growth follows an announcement three months ago by Norwich Union of significant price rises in motor insurance premiums. Prices could rise by as much as 40 per cent, dependent on risk category, and Kevin Sinclair, Managing Director of AA Insurance - which recently produced its benchmark insurance premium index - is quoted as saying: "I expect other companies to follow Norwich Union's lead."

Cybit's TEFI products improve risk management and provide real-time data to enable fleet managers to reduce costs and increase productivity. Analysis of the first users of Cybit's TEFI products shows that almost 7 out of 10 fleets achieved a reduction in claims experience. The fleets, all of which had implemented Cybit's Fleetstar-Online solution, managed to reduce their fleet premiums with an average profit share of around £220 per vehicle in the initial 12 month period.

"TEFI is a very compelling proposition. The telematics industry is growing rapidly and has increasing relevance to the Fleet Insurance markets," commented David Raw, Director, Henderson Insurance Brokers and one of Cybit's appointed brokers for its TEFI products. "Our clients are becoming more aware of the importance of risk management, particularly when they can see cost savings and operational improvements. They can achieve a more accountable organisation, which means we can present them as more responsible clients to insurers, which is why they can get a better deal. Everyone involved is better off - it's a very virtuous circle - the client gets a tighter ship and lower costs, Cybit further increases take-up, and we get better clients with lower claims frequency."

Cybit's successful TEFI products are available across the country through a specialist broker channel, which ensures that all businesses with ten vehicles or more have access to this offer. One of the insurance companies to realise the benefits of backing the TEFI products is Britain's largest insurer, Norwich Union.

"At a time when fleets are facing an increased pressure on their budgets as a result of an increase in insurance costs, it is important that they are able to take measures that offset that cost," commented Cybit's Director of Partnerships, Ian Walmsley. "Cybit has unparalleled experience as a telematics vendor in this field, and we can offer fleets a unique proposition by fixing their premiums for three years - which in itself can represent a massive saving when we look at rises of 5-10 per cent every year - as well as offering profit sharing and a consultancy service that will ensure every organisation can maximise the benefits from their real-time location information and translate it directly into further bottom line savings."

Cybit was recently named in the top ten of the ABI’s Global Telematics Vendor Matrix, and was the highest ranked European organisation. The recognition came as the result of its innovation in technology and professional services to its customers.

Fleetstar-Online is Cybit's scalable Internet-based fleet and asset management solution that provides organisations with precisely the level of telematics functionality they require, while also ensuring an easy upgrade path so that it can evolve to meet changing business needs. Fleet vehicles are fitted with a small electronic in-vehicle-unit (IVU) which is tracked by GPS in real-time and then transmits data to Cybit's online control centre. It provides companies with a cost-effective ASP-based fleet management solution, which offers users anytime, anywhere access to the system via a standard web browser.

About Cybit
Cybit is the UK's market leading internet-based Telematics Service Provider (TSP). It provides over 1,000 organisations of all sizes across a wide range of industries with a comprehensive suite of online solutions to improve the management and control of nearly 25,000 fixed and mobile assets.

Cybit recently extended its reach into the maritime telematics sector following the acquisition of BlueFinger Limited, a global leader in the delivery of high value Economic Exclusion Zone (EEZ) management solutions to UK and international governments.

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Contact information:
Duncan Burford
IBA - PR for Cybit
Tel: 01780 721 433

Chris Linney
Senior Marketing Executive, Cybit
Tel: 01480 389100

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