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.
“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 Some traditional car insurance products may become outdated as propositions like ours use technology to provide value for money, or, crucially, help make significant savings on defending or supporting claims,”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,”
“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.”