Insight 6 – Accelerating change with driver data

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  • 35.9% of Gen Z and Millennial drivers want safety coaching based on their telematic device analytics.


The Pew Research Center notes that Millennials have surpassed Baby Boomers as the US’s largest living adult generation.14 It should therefore come as no surprise that the wants, needs and buying habits of Millennials have had a great influence in shaping what insurance looks like and how it is sold today. With Gen Zs now joining the pool of potential protection purchasers, they are following in the footsteps of the generation before and making their mark on our industry’s landscape.

As discussed above, both generations have grown up in a world shaped by technological advancements, where online interactions and digital convenience are the norm. Their demands have been a catalyst for innovation and paved the way to a rise in insurtech companies in the P&C sector. These companies cater to their preferences by offering user-friendly interfaces, quick quotes, and online policy management. A prominent example of this is Lemonade, an insurtech that utilises artificial intelligence and behavioural economics to offer homeowners, renters, pet and car insurance in the US, and more recently, in Europe.

Last year, ReMark made a significant stride, introducing P&C insights to our consumer study. Our inaugural venture into P&C incorporated topics covering cyber, motor and embedded insurance. In the last 12 months, there have been some evolutionary developments in this space, and they leave their imprint on this year’s report, with a tangible sense of progression.

Telematics trending upwards
The global automotive telematics market saw considerable growth in the last 12 months. Despite disruption caused by economic instability and the war in Ukraine, the global market for automotive telematics grew from $100.1bn in 2022 to $132.9bn in 202315 with it expected to reachn$360.6bn by 2027.

There has been some great product development in this space, too. Drivers can now share driving data collected from their car without needing to physically install a telematics box. One of the UK’s largest car insurers Admiral, in partnership with Ford Smart Mobility and telematics service provider Redtail Telematics, launched new car insurance offering "Admiral Live". It allows Ford vehicle owners equipped with a FordPass Connect Modem to conveniently share their car's driving data, eliminating the need of an installed telematics box. By adding their vehicle onto their FordPass app and permitting data sharing on their in-vehicle screen, customers authorise the transfer of data and create a bespoke driving experience.

As we discussed last year, the theory is that by analysing driving data, motorists have the opportunity to improve their driving habits, resulting in increased safety and fuel efficiency. This data-driven approach empowers drivers to make informed choices and take proactive measures to enhance their skills behind the wheel. Furthermore, when insurers receive driving data, they can more accurately assess the level of risk associated with each driver, leading to fairer pricing and tailored coverage, and have a ready-made path to regular customer engagement. In this section, we discuss whether the Gen Zs and Millennials buy into
this theory, and what they want in exchange for their valuable driving data.

Car ownership & telematics take-up
From our research data, we see that 67.1% of Millennials own their own vehicle, whilst 4.5% rent or lease a vehicle. Gen Zs, perhaps as one would expect, have lower ownership levels at 47%, with 17.2% of them sharing a family vehicle. Across both generations, 55.1% of respondents state that cars are their main form of transportation on a day-to-day basis.

Looking at respondents that drive a car, whether that be owned, leased or shared with family members, 36.8% of Gen Zs and 27.9% of Millennials have or use telematics to monitor their driving habits.

Diving deeper, as it can be the most affordable, and in some instances, the only way for new drivers to insure their first wheels, more younger drivers have a telematics device. Among 18-21-year-olds, 41.4% have a device, while, by age 37-42, the percentage has fallen to 21.3%.

Globally, the adoption of telematics solutions exhibits some notable disparity. In our research, Hong Kong leads the pack with an impressive adoption rate of 69.4%, closely followed by China (66%), Singapore (58.9%), and Taiwan (47.1%). On the other end of the spectrum, Australia exhibits the lowest adoption rate at 12%, accompanied by Japan (13%), Ireland (16.8%), and Mexico (19.7%). These variations can be caused by a selection of factors, such as the mandating of use, cultural attitudes towards geo-tracking and data privacy, access to reliable GPS, and local regulations.

  • More than 35% of Gen Z drivers have a telematics device fitted in their vehicle.

The motivation for telematics

Understanding the drivers behind telematics adoption is crucial in understanding the disparity observed among markets. For a notable portion of respondents (30%), installation of telematics devices was not of their own volition, but rather a requirement imposed by their insurers. This underscores the influence of insurer policies in shaping consumer behaviour.

Notably, the primary incentive for acquiring a telematics device was financial in nature, with 31.5% of respondents citing the desire to secure a more affordable insurance premium. Additionally, 25.5% of respondents indicated that their motivation stemmed from the potential fuel and cost savings achievable through improved driving efficiency. With the cost-of-living crisis, high inflation and rising interest rates, the desire to save money on car insurance premium is not surprising. What is surprising is the low level of importance of reducing one's carbon footprint for the environment, at less than 5%. Gen Zs and Millennials are often touted for their eco-consciousness and climate change activism. It seems though, despite the earnest of intentions, it is the pinch in the wallet that hurts the most.

While a cheaper insurance premium was the leading motivator for telematics device installation, we asked consumers what information they would like to see if they could use an app that synchronised with their telematics device.

Respondents were keen to take advantage of the driving insights generated by telematics. When asked what kind of information they would like to see on an app synced to an analytics device, the top two responses were recommendations and coaching to make them a safer driver (35.9%) and to make them more fuel efficient (31.3%).

The irony here is that when asked to rate their driving abilities, 87.7% of respondents rated their driving at four or five stars out of five. Just 1.7% of respondents were happy to accept their driving was below average. That such a high proportion of respondents drive at an above average level is statistically implausible. But perhaps the desire for coaching is implicit acknowledgment of their imperfect driving abilities and recognition of room for improvement in safe driving.

Again, there is little interest in environmental concerns by Gen Zs and Millennials, with data to track their carbon footprint garnering only 10.1% of responses. This was a surprising drop from last year when 34.9% of respondents selected this option. Gen Zs and Millennials were equally disinterested in access to technical driving data at 9.7%, a substantial drop from last year’s report at 37.9%, albeit covering more generations.

I’m already a good driver…but I’ll take more coaching.


Good rewards for good driving

It is interesting to observe that despite generational changes, the attraction of rewards, freebies, and vouchers remains a prevalent marketing phenomenon. Offering desirable benefits and incentives to motorists can encourage greater take up of telematics. When asked “if your car insurer invited you to install an analytics device on your vehicle, which of the following benefits would you be most interested in?” the top answer was car-related services such as free roadside assistance or theft alerts. This finding aligns with the last year’s top choice, suggesting a continued interest in practical and value-added services that enhance the overall car ownership experience.

For those who stated they were most keen on vouchers and rewards, we probed a little deeper, exploring their preferred rewards in exchange for good driving behaviour. Various rewards were proposed, including retail vouchers, gym membership discounts, even gaming vouchers for a PlayStation or Xbox.

The most popular option was petrol vouchers (32.8%), followed by retail vouchers (28.5%) and supermarket vouchers (19.3%) Again, with the cost-of-living crisis, high fuel costs and supermarket shopping baskets becoming more expensive to fill, the desire to save money is understandable.

Whether it is saving money on fuel or saving lives by becoming a safer driver, by understanding the key features that customers want, insurers will be able to unlock the telematics market for a broader audience.

In the driver’s seat

Wider take-up is still dependent on motorists’ attitudes. The negative perception associated with having their driving monitored with Big Brother overtones is still an uncomfortable concept to many motorists. However, insurers should be encouraged by this feedback from Gen Zs and Millennials. By getting the strategy right in offering a good price, incentivising installations and rewards for good driving behaviour, insurers are in the driver's seat to steer this upward trajectory of telematics growth.

Key Findings

More than 35% of Gen Z drivers have a telematics device fitted in their vehicle, with the highest levels of adoption in Hong Kong and China.

Approximately 30% of installed telematics is mandated by insurers. When not mandated, the biggest motivation for Gen Zs and Millennials in adopting this technology is saving money on insurance premium or fuel.

Car-related services such as free roadside assistance or theft alerts are the leading incentive to encourage greater take-up of telematics. Petrol and retail vouchers are the most attractive reward for good driving behaviour.


[14] Fry, R. (2020). Millennials overtake Baby Boomers as America’s largest generation. [Online]. Pew Research Center. Available at:
2020/04/28/millennials-overtake-baby-boomers-as-americas-largest-generation/ [Accessed 26 June 2023].

[15] Research and Markets. (2023). Automotive Telematics Global Market Report 2023. [Online]. Research and Markets. Available at: https://www.researchandmarkets.
com/reports/5744330/automotive-telematics-global-market-report#sp-pos-4 [Accessed 21 June 2023].