CAA South Central Ontario makes deal with tech provider Quindell for telematics offering

CAA South Central Ontario has contracted technology provider Quindell to provide its auto club members and insurance policyholders with new telematics services.

The deal is the second of what Quindell says are several contracts expected to be announced by the end of the year. It is also the largest North American deal for Quindell to date, the firm said Friday.

The contract is on an exclusive basis for a minimum five-year period, in which Quindell will provide the technology for all of CAA SCO’s telematics initiatives to its member base.

CAA SCO will be using a full suite of Quindell solutions, including the provision of devices, network connectivity, product platform, systems integration, logistics, mobile applications, data analytics, call centre services and consumer-facing interaction.

Quindell said it is able to implement all aspects of a telematics program within eight weeks.

“Our planned telematics offering will enhance CAA auto insurance offers, bring fairness to insurance, reward better driving behaviour, and lead to safer roads,” Matthew Turrack, vice president of insurance for CAA SCO commented in a statement from Quindell.

CAA SCO has around 1.9 million members in southern Ontario and provides auto insurance for about 90,000 customers. Across Canada, CAA has about 5.8 million members.

Quindell says the revenue potential for the deal is $26 million to $78 million per annum, based on a 10% to 30% take-up rate among auto association members in Canada. Quindell said it and others in the market believe the 10% to 30% transition to telematics programs will occur over the next five years.

If there were a similar adoption rate for CAA SCO sister associations in Canada, it would provide revenue potential of $79 million to $237 million per annum, Quindell said.

“The CAA South Central Ontario is the first major Automobile Association in Canada to contract with Quindell, and it represents a tremendous win for both our companies,” Rob Terry, founder and executive chairman for the firm noted in a statement.  

“This agreement once again validates Quindell’s significant market leading model, which we believe will continue to positively disrupt the Canadian insurance market. It also confirms our belief that the insurance market in Canada is going to exceed all our previous plans for growth in the short to medium term.”