Technology cuts insurance costs for young drivers

A brilliant article here from BBC news demonstrating the importance of information in allowing markets to function efficiently. In this case, the market is for car insurance and careful young drivers using 'black box technology' have been early adopters and capable of proving that they are safe drivers.

As a consequence, premia for the under-25s are falling and those for the over-50s are rising, not something that a less sophisticated market would expect. That being said, I suspect that if the insurance companies themselves wanted to do something about this, they might attempt to access mobile phone data to provide this information themselves - although I suspect that privacy laws preclude this.