United General Insurance Company Limited (UGI), one of Malawi’s leading short-term insurance companies, has partnered with global vehicle tracking services company Ctrack, part of Inseego Corp., to provide insurance telematics services to its customers. It has launched an aggressive rollout strategey, with the first 1 000 units already delivered and potential for expansion across the group’s entire customer base. The partnership will provide added advantages to its clients who insure with UGI, and have the tracker device installed in their vehicles.
Under the agreement, Ctrack will provide UGI with its proprietary Pay How You Drive model. This usage-based insurance model gathers data related to driver behavior and accidents. The data gathered will be used to reduce claims loss ratios, reduce the frequency and severity of claims, and minimise fraudulent claims pay-outs. Reduced claims outlay will translate in low premiums, and customers will be assured of safety.
Furthermore, driver behavior is one of the main causes of road-related accidents worldwide. In Malawi alone, it accounts for around 90% of all accidents, with speeding, fatigue and driver distraction named as the main causes. By embracing the insurance model, UGI aims to encourage its customers to become safer and more responsible drivers.
Insurance telematics is increasingly being seen as a disruptive force that will have a major impact on the auto insurance business over the next decade. Already commonplace in Italy, the United States and the UK, a number of new markets have recently experienced a growth in the adoption of it, including Japan, South Africa and Brazil. According to SMA research, around 70 percent of all auto insurance carriers in the United States are expected to adopt the model by 2020.
“Unlike the traditional models, Ctrack’s insurance telematics solution gives insurance providers an insightful, real-time and accurate assessment of driving behaviour,” says JW Oberholzer, Ctrack’s International Channel Manager for Africa. “Driver behaviour monitoring is fundamental to this model and provides for an ongoing, personalised dialogue between insurers and policy holders.”
“Our offering will transform UGI’s relationship with their customers from necessity to one of mutual benefit,” concludes Oberholzer.