Policyholders can now get premium discounts based on good driving behaviour.
Cross Country Insurance Consultants (CCIC) and Ctrack, a subsidiary of Novatel Wireless, Inc (NASDAQ:MIFI), recently formed a partnership in a bid to improve customer retention and encourage better driving behaviour. The niche national 4×4 insurance company has been using the global telematics solutions provider’s insurance telematics solution for the last year to accurately gather data relating to driver performance.
Called Usage-Based Insurance (UBI), this type of vehicle insurance allows for auto insurers to track mileage and driving behaviour using telematics. The basic idea is that a driver’s behaviour is dynamically monitored while the person drives. These telematics services measure a number of elements of interest to underwriters, including manoeuvring, speeds, distances travelled and journey duration.
Premiums are calculated based on an individual’s driving style and risk profile. Policyholders who practice good driving habits, such as sticking to speed limits and avoiding high risk driving, are rewarded with discounts on their premiums.
According to Ian Georgeson, CEO of CCIC, the success of this project is the transparency of the information available to the client. “Each policyholder is given login details to their own driver dashboard. They are able to see their driving score, analyse their own driving behaviour, track and monitor their vehicle at any time and use an electronic log book to differentiate between business and private trips,” he said.
Policyholders have the comfort of knowing that if an alarm is triggered by the device, the call centre will react immediately to establish what type of assistance to render, be it a medical emergency, vehicle accident or theft. If there is an incident that results in a claim, that report is also made available to the policy holder.
“Insurance telematics is fast becoming the norm in the South African insurance industry. There is no doubt that the benefits being derived from telematics is creating a fair insurance premium environment between insurers and their customers, as well as promoting safer driving styles,” said Pierre Bruwer, MD of Ctrack SA.
According to Georgeson, the relationship with Ctrack has enabled them to deliver a unique model to their client base that has been exceptionally well received by their customers. “Despite the project’s infancy, it is already proving to be beneficial to our bottom line and customer service. There has already been an improvement in driver behaviour and reduction in claims, showing a positive result in our loss ratio,” he said.
In 1999, Cross Country Insurance Consultants (CCIC) set about developing a niche insurance product designed specifically for the growing 4×4 community. It offers a range of innovative insurance and support products designed for the outdoor lifestyle enjoyed by many South Africans. Cross Country is a name that has very quickly become synonymous with the 4×4 outdoor lifestyle. This is largely due to the ongoing and loyal support from the brokers and clients who share their passion. CCIC is located in Fairlands, Johannesburg, South Africa. www.ccic.co.za.