Heritage Insurance Keny recently launched a telematics motor insurance solution dubbed “Auto Correct”, to bring driving data and analytics to the traditional insurance sector.
Auto Correct customers will have devices installed on their cars to track, collect and transmit driving behaviour relating to acceleration, braking and cornering, all of which are key factors in evaluating how well or poorly a vehicle is driven. These is expected to promote safety and enhance customer engagement.
According to Godfrey Kioi, Managing Director of Heritage Insurance Kenya, “Telematics is not limited to the pricing of motor insurance or driver behaviour. Our philosophy is cementing customer-centrism in the industry by engaging the customer and generating rewarding and memorable experiences. With telematics, we can make more effective use of data to deliver enhanced customer experiences, while posting improved motor insurance results for our shareholders,” said Mr. Kioi.
“Our usage-based insurance (UBI) product, Auto Correct, is a feasible answer to the ever-changing customer journey and industry, which has seen the emergence of innovative customer channels and millennial adoption of new technologies. Usage-based insurance (UBI) and acceptance of telematics capability in modern vehicles is expected to outpace traditional insurance,” added Mr. Kioi.
Drivers are given a driving score for better risk selection and pricing, where the cost of insurance is determined for each individual, based on their driving score as opposed to one rate for all drivers.
All private motor vehicle owners are eligible for Auto Correct and may potentially get up to 15% cash back on annual paid premiums at the end of their policy period, if they drive safely. They will also accumulate loyalty points, which can be redeemed from time to time at selected service providers.
Auto Correct comes with a smartphone app, that provides, among other things, driving feedback, weekly, monthly and annual scores as well as the accumulation and management of loyalty points. The app also provides information on where and how to redeem the loyalty points.
Heritage Insurance has also launched an Insurance Premium Financing (IPF) payment solution, available on the mobile phone.
Consumer opinion suggests that such innovation could help repair the existing mistrust and resultant high customer turnover in the insurance industry. This is due to the low confidence in insurance claims processes, which has affected long-term value optimization. Overall, the industry must adopt such innovation to redirect focus back to the end-customer experience.