Affinity Innovation
Paying for your young driver car insurance based on your personality is now possible. Following the insurance trophies ceremony held on October 1, 2020, an offer from AssurOne (wholesale broker) received the silver trophy for innovation affinitaire.
The company was awarded for an offer called auto insurance for young drivers, a dedicated offer for juniors by definition. Once they obtain their driver’s license, this offer allows them to access a highly competitive rate.
There is therefore a segmentation of this customer base based on the analysis of their personality.
How does AssurOne determine the personality of the young driver?
This auto insurance offer for young drivers based on personality features the inclusion of a small personality test within the subscription process, in the form of a quiz, with questions that follow one after another at a certain pace, encouraging the customer to respond as naturally as possible.
This approach is innovative because young drivers often have very few claims or insurance histories, making it a bit difficult to rate their risk. Insurers usually surcharge policies for drivers with no prior claims or history.
AssurOne is trying to gather this information in a new way. They relied on a start-up that conducted numerous tests in Italy, proving a very strong correlation between claim frequency and certain behavioral patterns.
At the end of this quiz, five behavioral axes are identified. The insured young driver receives this information and can choose whether or not to share it. If they decide to provide it, the insurer will receive a code from them that will enable immediate coverage under two different plans:
- If the young driver scores relatively well, they will be insured immediately
- If their score is lower, the insurer will suggest a device and attempt to improve their driving behavior by sending prevention messages, challenges, etc.
Whether the client has a high score or not, whether or not they have a device, the price remains the same. The cost of the device is shared across all users. The insurer aims to simplify the offer for young drivers; there is no discrimination for those who have a device.
How does the device work? (data collection, retrieval time…)
As soon as the young driver receives this device, they must install it themselves. Installation is straightforward and relatively quick, guided by the installation manual. Once installed, the insurer analyzes the young driver’s driving. The device does not record the vehicle’s geolocation.
After analyzing the driving style, the insurer will send tailored prevention messages via a chatbot on Messenger (Facebook). The insurer can interact with the driver to help improve their driving habits.
Who can access this offer?
All young people up to 28 years old are eligible for the online offer (assuronline).
AssurOne has really focused with their insurers and reinsurers on this niche.
The insurer aims to reach all young people wishing to build their no-claims bonus as early as possible, regardless of their parents.
They also target young drivers who want reasonably priced insurance when they consider their driving behavior to be responsible on the road.
The rates will be particularly aggressive for:
- Very young drivers just licensed at 18 years old.
- Young drivers who obtained their license at 18 and have gone 2 or 3 years without driving. AssurOne’s offer is also available for these drivers.
Why are there so few offers for young drivers?
Insuring young drivers is quite challenging. It’s very difficult to insure young people or for them to find insurers willing to cover them. Offering this kind of young driver insurance is a long process for distributors. Assurone took almost a year to develop the offer.
It requires convincing of the company’s credibility, demonstrating how the auto policy is managed, and showing how data management is handled on the actuarial side.
Where can you find this offer?
The offer is distributed through partner brokers as part of a predefined contract.
The netvox brand manages the contracts. That is, the AssurOne group creates a set of offers within its management, which are then made available to brokers.
You can find this offer:
- Directly via Assuronline
- Through automotive manufacturers, thanks to major partnerships
Currently, the distribution of this offer is multichannel, with a trend toward omnichannel.
Since when has this young driver offer existed?
It was launched in May 2020, at the end of the lockdown. There was obviously a testing phase beforehand, as a technology was developed behind it that needed to be adapted over time to fix bugs.
The rollout was slow initially because AssurOne wanted to ensure everything worked properly. Then, there was a significant acceleration; the company also won tenders with distributors close to young drivers.
By November 2020, nearly 4,000 policies had been sold in just five months.
Were you aware of the personality-based young driver insurance offer?
If you are interested in this offer, get a quote now!
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