The partnership is ‘our way of continuing to support’ a sector ‘hard hit by the pandemic’, says insurer motor portfolio manager
QBE has partnered with broker Gallagher to provide a new pay-as-you-go (PAYG) mileage-based motor feet insurance for the coach market.
The product, aimed at coach operators with fleets of more than 10 vehicles, launches on 1 February 2022.
Customers’ initial premium will be calculated on their historical telematics data, specifically vehicle mileage and usage.
Any adjusted premiums will be established using an in-vehicle telematics device, in which a GPS system will monitor the movement or location of a vehicle in real-time.
Daniel King, QBE motor portfolio manager for London and the south east, said: “This is a first step in the viability of a flexible, telematics-based pricing model for a part of the transport sector that has been hard hit by the pandemic.
“Although restrictions have lifted, it’s unlikely coach operators in the UK will revert to pre-pandemic mileage levels for quite some time.
“This is our way of continuing to support the sector.”
King further highlighted that telematics will help QBE better understand exposure and how to price business – this will be done by exploring the likes of traffic density and individual driver behaviour.
However, “we need to find the right balance to ensure new solutions are straight-forward and actually respond to our customers’ needs”, he added.
Gallagher transportation practice leader Phil White said: “Our partnership with QBE marks a milestone in our support for clients in the sector - offering both flexibility and transparency when it comes to their insurance.”
He added that the product will also enable the broker to “create accurate risk profiles” for coach customers.
QBE, which has been underwriting passenger transport vehicles for over 50 years, is a member of the Confederation of Passenger Transport (CPT). Gallagher is also linked to the CPT service, being commercial partner.