Technology group to launch new product, Coverbox.
See analysis: PAYD turns the corner
Technology company Wunelli has a panel of insurers ready to revive pay-as-you-drive (PAYD) cover in the new year, it says.
At least six insurers are believed to be on board, although Wunelli would not reveal names.
However, Norwich Union (NU), the only company to have launched PAYD, is not among them. It told Insurance Times that it “will not be re-entering the market” and that it will put its PAYD offering on ice.
Wunelli said its technology, called Coverbox, could track the time, duration and distance a motorist drives. Insurers will use this to negotiate PAYD rates.
Sandy Dunn, Wunelli chairman, said: “We believe the consumer and the motor industry are ready for PAYD.
“Others, such as NU, have tried before with older generation technology and without any real success, but our technology is new, highly capable and based on integrated security solutions.
“The entire concept and system has been thoroughly tried and tested. As well as fundamental features such as monitoring time and location of vehicle use, the Coverbox system enables tracking and location of stolen vehicles through GPS technology – a major added bonus for our customers.”
Norwich Union launched PAYD in 2005 but failed to reach its target of 100,000 customers.
An AA spokesman said the company was speaking to insurers and telematics companies about PAYD, although it did not say whether Coverbox was part of its scheme.
The spokesman said: “We believe it is the way forward.”