Insurance Technology Featured Article

Spanish Companies Tackling Teen Auto Insurance Costs with Telematics

February 11, 2013

Teenage drivers, especially males, get slapped with high insurance premiums. No matter how well some teenagers drive, they have to pay for the sins of their peers.

In the U.S., the CDC reports that seven teens aged 16 to 19 die every day in automobile crashes. Teenage males are two times as likely to be killed in motor vehicle accidents as their female counterparts.

In Spain, the contrast is even more stark. The World Health Organization reports that Spanish males comprise 78 percent of traffic-related deaths, while females make up just 22 percent.

An innovative partnership between Telefonica and Generali Seguros may cut auto insurance costs by 40 percent for Spanish drivers. Although the program caters to all customers, it will especially benefit teen drivers.

When customers take out an auto insurance policy with Generali Seguros, the premiums are calculated first by using questionnaires and actuarial tables. Customers pay 50 percent of the premium upfront and then pay the rest of the premium in 11 monthly installments.

From there, telematics come into play. Telefonica’s (News - Alert) M2M data-transmission device is then installed in the car at a number of car service centers around the country. The device then reports on the driver’s habits to Generali Seguros, which adjusts the 11 remaining monthly premiums according to the telematics reports.

Factors influencing cost include the number of kilometers per year clocked by the customer, city versus rural driving, day versus night driving, adherence to speed limits and sudden acceleration and braking habits.

Customers can view their real-time data through either a Web dashboard or an iOS or Android (News - Alert) mobile app.

Also, if the M2M device reports an accident, emergency personnel can use location-based services to immediately find the vehicle. The insurance company calls the driver to find out whether assistance is needed.

Customers of all ages can purchase these policies, called “pago como conduzco,” at Generali Seguros branches around Spain. Teens will get a realistic picture of their driving habits, while parents will get both peace of mind and a much-needed financial break.




Edited by Braden Becker

Article comments powered by Disqus

Related Insurance Technology Articles

Auto Insurance Telematics Poised for Explosive Growth

Smart cars are getting smarter and have become foundational elements of our increasingly connected world. The data they generate pertaining to things like driver habits, the car condition and adherence to maintenance best practices, where the car is driven, where it calls home, etc. are all critical in determining insurance premiums. In fact, they are what will enable insurers the ability to reward customers who are good drivers and good owners while charging higher rates for those who are less … [ Read More ]
10/23/2014

Allscripts and ScriptSave Partner on Prescription Savings Program

While much attention in the insurance world is centered on using technology to improve the customer care of people with insurance, there are also efforts underway in the U.S. to help those without insurance get timely access to affordable medications. These efforts ultimately have the impact of bending the cost curve for medicines for everyone. [ Read More ]
10/23/2014

Leveraging M2M and IoT Services can Help Conventional Insurers Face Competition, says SAP Study

SAP SE stated that a recent study sponsored by it, revealed that long-standing insurance providers need to leverage and experiment with machine-to-machine and the Internet of Things and also invest more in customer-related technologies in order to gain a competitive advantage over non-insurance companies. [ Read More ]
10/21/2014

Vlocity Introduces Two New Cloud Apps Built on Salesforce1 Platform

Vlocity designs and creates industry-specific applications on the Salesforce1 platform to provide organizations with functional cloud in mobile software solutions that embed industry best practices and business processes. These applications take away all the hard work of integrating the latest technology and the processes an organization needs in one single app that can be deployed across different devices. With Vlocity, organizations are able to improve customer experience interactions across t… [ Read More ]
10/21/2014
FREE Insurance Technology enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!