Australian mutuals lead in the way in global motor technology

25 February 2016

Australian motoring mutuals have joined forces to become the global leader in automotive analytics by hiring a team of 200 software developers in Australia and across the world. The drive is being led by the Royal Automobile Club of Victoria (RACV) with other Australian motoring organisations, including the NRMA, RACQ, RACWA (BCCM members), RACT and RASA also minor stakeholders.

The RACV owns 90 per cent of the Intelematics Group which is the leading player in Australia in providing traffic guidance to motorists and analysing car performance data, including locating mechanical faults and accessing parts. It can also monitor driving patterns (which will become important in insurance rates) and locate cars to curb theft and a range of other services. Longer term, RACV technology may be used by insurance companies to monitor the driving patterns of younger people. If insurance is linked to driver behaviour, it could slash the road toll. The operation is already profitable and is close to achieving its global goal.

It is the second area of car analytics rather than traffic management where Intelematics is driving to be the global leader and where RACV is spending vast sums.

Intelematics developed one of the best traffic knowledge communication systems in Australia and it is marketed widely via the Australian motoring organisations. At a time when the Australian government is desperately seeking to hold up hi-tech start-ups that go onto become world leaders as role models, it is the ‘mutual’ rather than the ‘shareholder’ structure that looks like it will deliver a breakthrough for the nation.