Core Insights - Younger consumers in the UK are increasingly adopting pay-as-you-go (PAYG) or usage-based insurance (UBI) policies, with 14.4% of those aged 18 to 24 holding such policies compared to only 2.8% of those aged 25 and over [2][4] - Despite a general decline in car insurance premiums by 10.5% over the past year, younger drivers under 25 are experiencing a 3% increase in premiums, particularly those aged 17 to 19 [4][6] - Telematics providers are reportedly less willing to offer competitive rates to younger drivers, which could impact their insurance affordability [4][5] Group 1: Younger Consumers and Insurance Trends - The appeal of telematics and flexible insurance models is stronger among younger drivers, who are more cost-conscious and open to alternatives to traditional policies [2][5] - Insurers are encouraged to invest in telematics propositions tailored to younger consumers to strengthen brand loyalty and improve risk assessment [5][6] Group 2: Market Dynamics and Opportunities - The findings indicate that younger drivers represent a key audience for telematics and UBI, despite facing challenges related to affordability and pricing competitiveness [6] - There is an opportunity for insurers to adapt their offerings to build stronger, long-term relationships with younger consumers as their insurance needs evolve [5][6]