Allianz’s Bennett Joins Drivestyle Insure Holdings As Ceo

AndrewBennett

Andrew Bennett, previously Broker Sales Manager with Allianz, has joined car insurance telematics pioneer DriveStyle Insure Holdings as Chief Executive – and says the scale and impact of the pay-as-you-drive opportunity is way deeper than much of the market appreciates.

Andrew led the Allianz team working with DriveStyle Insure on the 18-month development of the Coverbox DriveStyle pay-as-you-drive/pay-how-you-drive (PAYD/PHYD) behavioural insurance products.

Coverbox is a simplified pay-as-you-drive motor insurance product, DriveStyle a more sophisticated product which brings into account driving behaviour.

“PAYD and PHYD insurance products are not simply a different way of delivering cheaper premiums for customers. Some traditional car insurance products may become outdated as propositions like ours use technology to provide value for money, or, crucially, help make significant savings on defending or supporting claims,”

said Andrew Bennett.

“There is a big education job to be done on telematics into the insurance industry – much of which in all innocence doesn’t know what it doesn’t know – the government, which perhaps doesn’t have a complete picture of the potential for saving the country money, and to the consumer, the vast majority of whom have no appreciation of how telematics could genuinely cut their costs.”

Andrew joins DriveStyle Insure Limited with nearly 25 years motor insurance industry experience under his belt, including Insure the Box, RBS/Direct Line and BGL – and was a member of the Insure the Box start-up team.

“Telematics will bring claims costs down, consequently bring down the cost of overheads to the insurance industry, will mean a cut in insurance costs and premiums to consumers, ultimately have a much broader and deeper economic impact, and is likely to significantly impact crime and insurance fraud,”

said Andrew.

“The market will also now start to open up – telematics works not just for young drivers, but for any driver.

The challenge is provoking the consumer pendulum to swing – but the issue could well be addressing it when it happens: many will remember how SMS and texting suddenly took off, and the telecoms networks weren’t ready for it.

“Telematics-based insurance may well take the same course, but the least-prepared insurers will find their customers dropping off in droves because they don’t have a PAYD/PHYD product to offer them.

“Part of what DriveStyle Insure Limited has built into its development and delivery programme is the capability of providing robust and thought-through affinity products which can be switched on very quickly for those insurers who recognise the need, and want to outsource.

“To address this likely growth in demand, we’re currently re-invigorating the Coverbox panel product – but there will be far, far more happening not just at DriveStyle Insure, but throughout the motor insurance sector as a consequence of the growth in acceptance, and then demand for, telematics-based insurance products.”

Young Car Insurance For Older People

Coverbox, www.coverbox.co.uk, one of the pioneering pay-as-you-drive car insurers, is pushing its successful younger driver insurance product into older driver and low-car-use markets – with a minimum annual mileage of 3,000 miles.

Coverbox is established as a provider of insurance for younger drivers, but Coverbox Miles will bring the established pay-as-you-drive product to more people in the full 18-85 driver market – and it will be particularly attractive to those who are using their cars less in the current economic climate, or who as a matter of course rack up relatively small annual mileages.

“The average driver is said to cover 10,000 miles a year, and many insurance policies – regardless of how many or few miles a driver covers – are based on that figure, and the risk that comes with driving that distance: so even if they drive a half or even a third of that distance, they’re still treated as being a 10,000-mile-a-year driver,”

said Johan van der Merwe of Coverbox Miles.

“Our new Coverbox Miles product has a minimum annual mileage of 3,000 – and because it’s pay-as-you-drive, and less distance means less risk, the driver pays for only the miles he or she covers. But if they have underestimated their annual mileage, then they can buy more miles to see them through the year.

“It has proved to be a very successful product for younger drivers, but we have a growing customer base of older drivers who have seen it can prove to be great value for them too. It has become a product that’s suitable for all, but tailored for each individual. Why, if somebody – regardless of age – only drives 3,000 or 4,000 miles a year, should somebody pay a premium based on the national average of driving around 10,000 miles a year?

“75% of the telematics/pay-as-you-drive market concentrates on younger drivers – but this is a product for drivers of all ages,”

said Johan van der Merwe.

PODs and Personal Cashboards: Coverbox Pay-as-you-drive Insurance Helps Bring Down Driving Costs.

Coverbox fits a POD – a premium optimisation device, once known as a “black box” – which sends information to your Coverbox “personal dashboard”. Telematics-based pay-as-you-drive car insurer Coverbox then allows you to monitor those journeys via your “personal dashboard” on your PC, computer, smartphone, laptop or tablet. By seeing where and when you drive helps you change those habits, turn multiple journeys into one journey, change the time of your regular journeys away from high-risk peak rush-hour driving times to low-risk driving times, thereby bringing down the cost per mile of car insurance, and lowering the risk of being involved in an accident or claim.

If restaurants worked like traditional car insurers, then you’d pay the same for champagne and caviar as you would for fish and chips and fizzy water.

Traditional car insurance, where you have to pay up-front for a minimum of 6,000 miles insurance cover AND subsidise bad drivers’ habits, behaviour, accidents and claims, should not work as a commercial concept. If the same commercial principle was applied to, say, restaurants, then it would mean everybody going into a restaurant pays the same up front before they order, but while you may just want fish and chips and a water, you’d be paying the same as somebody else who orders champagne, lobster and caviar. That’s how traditional car insurance works because insurers lump together what they perceive as being similar people living in the same postcode – regardless of whether they drive 3,000 miles a year, safely, in low-risk environments, or 20,000 miles a year dangerously and in high-risk environments. Pay-as-you-drive car insurance from the likes of Coverbox means you are charged as an individual according to the times and places you drive, and the mileage you cover. Coverbox allows you to monitor your journeys and driving habits via a “personal dashboard” on your PC, computer, smartphone, laptop or tablet. By seeing where and when you drive helps you change those habits, turn multiple journeys into one journey, change the time of your regular journeys away from high-risk peak rush-hour driving times to low-risk driving times, thereby bringing down the cost per mile of car insurance, and lowering the risk of being involved in an accident or claim.