General insurance

There is a growing interest across Europe in usage-based charging for personal motor insurance.

Products focusing on niche markets are becoming numerous, particularly in the offers for young drivers where premiums are very high. Companies are testing various versions of usage-based or pay-as-you-drive (PAYD) insurance systems, service delivery techniques and business models.

The products range from the simple where a driver pays a penalty rate for driving between certain late night hours, through to more complex arrangements, such as where the policyholder is constantly monitored (pay how you drive PHYD) for speed, location and driving behaviour. In this more complex scenario penalties or higher rates are charged accordingly, with the potential for future cancellation of insurance cover in extreme driving circumstances.

At Steria we believe that telematics will make a fundamental difference to the personal motor insurance market in Europe and we have been present in the telematics industry for over 15 years. We offer a range of financial models that will support your entry or expansion in the insurance telematics industry. We are already providing the communication management for the Peugeot Citroen eCall services and over 1 million vehicles are supported through the Steria service.

Our support for telematics-based insurance extends beyond the telematics elements to include the insurance policy administration and IT application provision as well as the infrastructure and services supporting the offer of PAYD products. Solutions are tailored to individual company requirements where any element can be supplied and managed by Steria or third party suppliers. We can also give you assistance with product design and options for administration and services to create your own telematics based insurance products.

Data from devices fitted in the vehicles is collected by Steria from where it can be supplied as raw material for your analysis. We can use it to provide information reports measuring driving data, trip information, green driving statistics and performance, actual usage statistics for premium calculation and risk analysis, or to provide portals for you or your customers to access current information about vehicle usage.

Delivering benefits

With a telematics strategy in place you could experience reduced claims incidence of up to 30% for drivers using monitoring devices and the ability to get away from the traditional annual renewal cycle by charging a usage-based monthly insurance cost. A new revenue stream is possible as you attract valuable new customers willing to use telematics devices to encourage safer driving.