Drive Smart with Smartbox
A company called the Co-operative Insurance in the UK that kind of took all these transaction models and kind of mixed it all together to come up with a new business model. When you think about it, if you're a young driver and you just got your licence, it doesn't matter which insurance company you go to. They will charge you a high premium, because insurance companies work on demographics.They regard young, new drivers as risky drivers, so they'll charge you a higher premium. But they came up with a new product targeted at these young drivers. So they said, if you're a young driver and you're prepared to fit this piece of kit in your car called a smartbox, then this is how we will work with you.The smartbox measures your performance quality so how fast you brake and how quickly you accelerate, how quickly you take turns around a corner and that gets displayed on your online account. It shows your performance characteristics. And also young drivers, often their insurance products are paid for by their parents. So parents love this product. Parents want to know that their children are driving safely.And what they said is, if you're prepared to fit this product, we'll still charge you a high premium. But if you do well, we will refund that money every three months.Dr. N Shehabuddeen (Clever Innovation Stategies)