9th August 2017
Trak Global announces financing deal and restructuring
Trak Global Group (TGG) has announced a senior debt financing deal with HSBC and a new group structure, as the UK’s leading telematics and UBI (usage-based insurance) provider positions itself for the next phase of growth, which includes turning its attention to Europe and North America.
TGG chief executive Nick Corrie explained that the new structure divides TGG into two new group divisions:
- Carrot Risk Technologies, owner of the Carrot young driver broker, which has nearly 50,000 customers on its books.
- Trak (Global Solutions Ltd), which incorporates the Trak Global Solutions technology business, Trak Labs R&D hub and Appy Fleet, the bespoke ‘black box in a smartphone’, specifically designed as a business driving platform for customers at home and world wide.
“Trak Global Group is now the UK’s leading telematics player, but our strategic ambitions increasingly stretch beyond the domestic market.”
“We are already the seventh largest in the world, but we want to be number one. We want to move our live connections from the current hundreds of thousands into the millions and increase our EBIT tenfold to £50m in 2020. We think we can be the UK’s first telematics ‘Unicorn,’ exporting our expertise and taking advantage of our currency-led competitiveness.”
“For our telematics division we plan to exploit North American, European, and Middle East markets, where we anticipate growing demand for subscription-based business driving telematics (Appy Fleet), and rapid growth of UBI, especially in the US.
Global telematics revenue is forecast to grow from £11.6bn in 2015 to £38bn in 2020, or 55m units installed (2015: 15m). The number of customers using telematics in the UK alone is expected to grow from 0.6m now to 1.3m in 2019, mostly among young people who are comfortable using technology to manage their driving behavior.
“In Insurance, we want to establish App technology with more vehicle manufacturers (OEMs), and offer them a fully-fledged customer UBI propositions, including TPA services and risk management.”
Corrie explained that Trak Global is currently exploring deals with a number of car manufacturers, where the company provides scoring, product design and telematics technology expertise, while Carrot provides access to its capacity panel and delivers policy administration and customer interaction.
“We have all the end-to-end skills manufacturers need to grow their share of the telematics market for new cars. Trak Global and Carrot can now provide vehicle manufacturers with all the required elements of the telematics insurance value chain, from boxes through to data analytics and claims administration.”
“Our investment in R&D has already resulted in TGG’s Appy Fleet app, which will extend our reach into the grey fleet sector, which has yet to benefit from black box offerings, and we are trialing this Stateside with several US insurers and fleets.”
“Trak Global Group’s touchpoints now extend across the whole telematics arena, from fleets, insurance companies, vehicle manufacturers and individual drivers. All will benefit from our key competencies: capturing and analysing vehicle and driving data to improve efficiency, reduce costs and minimise risks in vehicles they own, lease to others or insure.”