The product has been developed to provide insurers with an alternative means of determining individual vehicle premiums, following a ruling by the European Court of Justice in March this year that prevents gender and age being taken into account as risk factors.

Johan van der Merwe, director of insurance telematics at Ctrack, said: 'Ctrack Intelligent Insurance addresses the issues created by the ruling, which underlines the importance of defining risk in other, more effective ways. Our solution will not only provide the data for insurers to rate drivers, but enable them to interpret the data as well.'

The product will help insurers to determine premiums using driver profiles based on the way vehicles are driven.

'Insurers should only determine risk based on distance, speed, time of day and driving attitude. Ctrack Intelligent Insurance proactively ensures that drivers exhibit safety conscious behaviours when they step into their vehicle. There will be no more arguments about the main driver, should an accident occur, and insurance conditions can be relaxed for drivers with a good driving profile,' explained van der Merwe.

'We envisage that our telematic solution will revolutionise insurance risk calculation, the nature of the relationship between the insurer and the driver and ultimately the way vehicles are driven. We are moving away from the era of insurance being a grudge purchase, and entering an era where premiums will be based on actual driver behaviour,' he concluded.