## 4 Case Studies
### Insurance
The technical hurdles to exploit the full advantages afforded by telematic devices exposes a gap between expectations and technical capabilities. The successful delivery of UBI products hinges on the cost of data transmission and telematic devices for both insurers and policyholders. Higher levels of data transmission from a policyholder's vehicle can incur significant costs to the insurer. Charges will apply to data transmissions on 3 GPParchitecture (such as LTE-V2X), taking the European data transmission average of GBP 20 per 50 GB, these costs could be significant [59]. Host data processing requires higher specification components to handle the increase in data flow and memory storage. Standard telematic devices will not be suitable for the additional processing requirements. Higher specification components with larger memory and processing capacity comes at a greater cost. For comparison, a standard telematics device is priced at \(\sim\)GBP 30 while a higher specification device comes at a cost of \(\sim\)GBP 80 with increased storage and networking capabilities. The higher priced model is built on current processing components, so a device capable of our forecasted storage and networking requirements is expected to incur a higher price. Embedded devices with higher specifications will be synonymous with higher priced/high spec vehicles. Embedded telematic devices also come at the disadvantage to the insurer, as OEMs create the data access points and communication architecture for telematic data retrieval. Data retrieval for the insurer would require permission from the OEM for the usage of the system architecture. In the EU prices for access to vehicle data is charged at GBP 100 [60]. If we assume that an insurer has 20,000 vehicles with telematic enabled policies, the GBP 100 cost per vehicle can contribute an additional GBP 2 million in operational costs for the insurer. However, depending on brand of vehicle each OEM will require a different process for data access and can charge a different price. We suggest that interest in UBI insurance may dissipate as policyholders and insurers are burdened with increasing costs. The regulatory and operational costs of embedded telematic devices will impact the availability and economic potential of bespoke insurance schemes. Insurers must prepare for restricted data access to avoid legal and compliance issues with the EU. Changes must be made by the insurer to comply with data consent requirements, local host processing and restrictions on data such as geolocation. The legal ramifications for non-cooperation could be significant, incurring a fine of up to 2% of annual revenue [61]. Where host processing is unavailable, the insurer must seek a competent third party to process policyholder data. The tendering process can be costly to the insurer in numerous ways. The process can be time-consuming, lack of competition can affect the contract price and a third party will add compliance issues. The selection of third-party vendors for data processing can price an insurer out of the UBI market. Less competition for UBI insurance schemes can further increase the premium prices for customers. There is again a gap between the ability of insures to provide UBI and the emerging regulatory landscape. The absence of geolocation data will inhibit the ability to accurately price a policy, detect fraud or calculate the risk profile of a policyholder using telematic data. Driver behavior monitoring and driver feedback systems that require linking geolocation data such as orientation, speed, acceleration, and deceleration to a policyholder will become inoperable due to the inaccessibility of this data.