What are the most effective ways to promote innovation in pay-per-mile insurance?

- Share the savings - Eat your old book before others - Spread the Word - Manage rate dislocation - Think strategically — once you have them at the right rate to miles risk price, retention is locked in unless you blow up CX

Having been a pioneer and at the forefront of PAYG in the early 2000’s when it didn’t exist, it was revolutionary in the insurance sector and a huge success with a specific customer base. The need then was for a SDH solution when vehicle utilisation was low. That’s what drove ‘the customers needs’ then but fast forward 20 odd years to today and it’s a different story. Pay per mile propositions come in different shapes and sizes with a mixed return in loss’s as not enough premium collected to make it profitable. Covid years aside, it now requires a different set of risk management elements added to elevate Pay per mile schemes in carefully selected lines of insurance.

Here are some effective ways: 1. Telematics Integration: Utilize real-time data for personalized risk assessments, enabling fair and dynamic pricing based on individual mileage, driving habits, and conditions. 2. User-Friendly Mobile Apps: 3. Behavior-Based Discounts: 4. Pay-Per-Mile Bundles: 5. Data Analytics for Personalization: 6. Educational Campaigns:. 7. Partnerships with Automakers: 8. Regulatory Advocacy: 9. Community Engagement: 10. Continuous Iteration: By combining technology, customer education, strategic partnerships, and a commitment to continuous improvement, insurers can effectively promote innovation in the pay-per-mile insurance sector, creating a more dynamic and customer-friendly insurance experience.

The real question is whether there is a profitable insurance model that matches up to a genuine customer need. There are times that PAYG is a useful solution particularly to a short term insurance need. That feels like a niche proposition. Which is fine and profitable businesses can be built on that offering.

Just as you should when selling any product or service, focus on FAB: the features, advantages, and benefits. Example... Feature: Mileage is tracked automatically Advantage: You pay for insurance only when you're driving Benefit: You save money for holidays and dinners out!

Just add the cost of Third Party insurance to Petrol leaving motorists to pay for damage cover if they wish. Get rid of the uninsured motorists at one go.

Leverage advanced analytics from aggregated and normalised telematics data to analyse not only how many miles have been done, but how those miles were done. This data can assist in creating personalised and fair pricing structures that reward safe driving habits, encouraging policyholders to adopt and maintain responsible driving practices.

A paradigm shift towards technology is imminent for many insurance customers. Embracing technological tools to introduce innovative products, such as pay-per-mile, is crucial in this dynamic environment shaped by various factors. Achieving usage-based insurance is possible through the incorporation of technologies like Telematics integration, behavior-based discounts, and blockchain technology. Strategically exploring and adopting new technologies ensures that the insurance industry remains at the forefront of technological advancements in product offerings.

The assertion that technology is a crucial driver of innovation in pay-per-mile insurance is obviosly well-founded. The use of telematics, GPS and smartphone apps for mileage tracking enhances accuracy and efficiency. Employing artificial intelligence and machine learning to adjust rates based on driving behavior adds a layer of personalization. However, the risk is overlooking potential challenges such as data privacy concerns and the digital divide. While technology undoubtedly offers advantages, it's vital to acknowledge and address associated issues to ensure a balanced perspective on the impact of technology in reshaping pay-per-mile insurance.

#Openinnovation in pay-per-mile insurance involves collaborative partnerships and knowledge exchange between insurance companies, technology firms, and other stakeholders. By embracing external expertise and leveraging innovative technologies insurance providers can definitely boost the development and delivery of pay-per-mile products, and through embedded insurance distribution model reach customers in an third part mobility/leisure customer journey

Me surgen dudas respecto de las ventajas de estos seguros, que el cliente debería averiguar: Mis dudas respecto al alcance de la cobertura en cuanto a : - Responsabilidad Civil del vehículo estacionado por incendio (al ser por millas entiendo qué no tiene cobertura) solo apto para vehículos en garaje privado (no comunitario ni situado en edificio comunitario ). - Robo e incendio del vehículo. De nuevo cuestiono la cobertura - Asistencia en viaje. Entiendo que la asistencia en viaje está igual de limitada, por lo qué de necesitarse el remolque del vehículo y las personas a mayor distancia por falta de depósitos de vehículos o hospitales no estaría cubierto Y otras coberturas que no tengo espacio Ventajas: vehículos usados en verano