Allianz enters telematics market

Insurance giant Allianz has plunged into the telematics market in a partnership deal with broker Coverbox over a new pay-how-you-drive product.

The DriveStyle Insure policy uses telematics data to model customers’ driving behaviour and offer lower premiums for drivers who perform well. Expected mileage is combined with data on driver behaviour to set the price.

DriveStyle Insure, which was launched yesterday at the Biba conference in London, is available across the UK and Allianz’s partnership with Coverbox includes further development work in telematics insurance.

Policy holders are given an on-line personal “dashboard” displaying their driving history and tips on how to drive more safely and reduce future premiums. It also shows their personalised insurance cost-per-mile calculation.

Coverbox executive chairman Johan van der Merwe said the policy was unique in that it allowed customers to work with their insurer to reduce risk. The initial premium was based on expected mileage.

“The customer will book an initial 5,000 miles and the way they drive for that 5,000 miles will affect the price of the next 5,000,” he said.

“When you go to the dashboard, there is a predictor there of what your price per mile is going to be once your purchased miles run out or you come to renew. So there is no surprise in what the price is going to be.

“And by using the portal you can adjust the way you drive and, as you do so, you can see the effect that that is going to have on your future premium.”

Allianz director retail broker and corporate partner Simon Brimicombe said: “We are delighted to work with DriveStyle Insure to support this initiative, which encourages safer driving. We believe pay-per-use policies are a fair and transparent way of calculating premiums.”