AXA head of motor Neil Mercier says insurtech deal a part of the insurer’s wider strategy to reach customers with different needs
AXA UK has partnered with a pay-by-mile insurtech start-up targeting motorists who drive less often.
By Miles measures each journey using a matchbox-sized black box device called a Miles Tracker, with drivers able to access the cost of each trip through a smartphone app.
The start-up will launch its first policies and driving app to waiting list members next month, and is aimed at motorists that typically drive under 7,000 miles a year.
Neil Mercier, head of motor, AXA UK said the move was part of AXA’s wider strategy to work with companies to find innovative ways to price risk. He added: “Our partnership with By Miles fits with our focus on finding innovative ways to reach customers – especially those whose needs differ from the wider market. By Miles will benefit motorists who spend less time behind the wheel, allowing them to pay for their insurance based on their usage and take control of what they pay for their cover.”
Rather than paying an annual premium, drivers will pay a lower fixed amount each year to cover their non-driving risks, such as theft and vandalism, then pay for the rest of their cover monthly, based on how many miles they drive. All policies will include No Claims Bonus protection at no extra cost.
In addition to giving By Miles members transparent access to their own spending and driving data, the company’s app and web dashboard offer chat support and a range of additional features that make owning a car easier.
James Blackham, co-founder and chief executive at By Miles added: “We created By Miles to help UK motorists take back control of their car insurance, combining smarter and fairer pricing with a better and more personalised service. AXA is one of the most experienced insurers in the world, and welcoming them as our underwriting partner will give our members the peace of mind that they’ll be protected by the best if the worst happens.”