ACCORDING to a new analysis from Frost & Sullivan, the European market for telematics-based car insurance is poised for explosive growth from this year to 2015. It found that this market earned revenues of US$3.5 million (S$5.23 million) this year and estimates revenue to reach US$670 million in 2015.

Telematics-based insurance uses satellite navigation technology to gauge driving patterns, allowing insurers to offer pay-as-you-drive policies to suit individual needs. Unlike conventional insurance, it can be precise in pegging premiums to risks.