The UK could be set to follow the lead of Italy and fit telematics boxes in all new road vehicles, according to Ofir Eyal, principal management consultant in the London office of the Boston Consulting Group (BCG). Mr Eyal, who has worked in insurance for more than a decade, intimated to delegates at the Insurance Telematics Europe conference in London that the UK Government was reviewing the pros and cons of "Monti's Law". Last year, Italy introduced compulsory legislation by former Prime Minister, Mario Monti, fitting telematics boxes in all new cars in a response to the rising number of fraudulent whiplash claims. Eyal said: "The transport minister is looking at this as a potential blueprint for how regulation might look in the UK." Nevertheless, roads safety minister, Stephen Hammond, played down any suggestions of imminent mandatory legislation. "The department continues to work with the insurance industry on the roll out of telematics products, which offer the potential to reward safe driver behaviour and penalise financially those who do not drive safely. "It is up to insurers and drivers whether they use these products but we have no plans to make them compulsory." A number of UK insurers already encourage the use of telematics, although this is predominantly aimed at newly-qualified drivers as means of driving down the cost of their premiums. Fleets could adopt telematics products in combination with reporting and driver development tools to help fleet operators improve safety, cut operating costs and reduce overall environmental impact through cuts to fuel consumption and vehicle wear and tear. Continued investment in vehicle appraisal technologies will ensure fleets can continue to secure efficient, cost-effective, high-quality advice and refurbishment that keeps vehicle downtime to a minimum.
