To share or not to share: an experimental study on telematics adoption in an insurance setting

Abstract Telematics motor insurance enables insurers to collect driving data to support risk assessment and pricing. This study investigates whether providing consumers with transparent information about how telematics technologies collect and use personal data influences their willingness to adopt telematics-based insurance policies. Using an online survey incorporating a randomized controlled trial and vignette experiment, 1,301 European motor insurance policyholders were randomly assigned either to a control group or to a treatment group that received information explaining the functioning of telematics technology before evaluating a series of hypothetical insurance policies. Results show that transparent information has a positive and statistically significant effect on consumers’ purchase intentions for telematics-based insurance. While telematics generates a privacy-related disutility, this effect is substantially offset by premium discounts and value-added services. This study addresses a gap in the literature by directly examining the effect of telematics-related information on adoption decisions rather than assuming consumer awareness or knowledge. It extends prior research on privacy tradeoffs and telematics acceptance by demonstrating that transparency acts as a modest driver of adoption rather than a deterrent. The findings suggest that clearer communication about data practices may support greater consumer acceptance of telematics insurance.