Affinity Innovation
Paying for young driver car insurance based on your personality is now possible. Following the awards ceremony of the insurance trophies held on October 1, 2020, an offer from AssurOne (wholesale broker) received the silver trophy for affinity innovation.
The company was awarded for an offer called auto insurance for young drivers, a dedicated offer for juniors by definition. Once they obtain their license, the offer allows them to benefit from an ultra-competitive rate.
There is therefore segmentation of this customer base based on personality analysis.
How does AssurOne determine the personality of the young driver?
This auto insurance offer for young drivers based on personality features includes a unique element in the application process: a short personality quiz, with questions that follow one after another at a certain pace, encouraging the customer to answer as naturally as possible.
This approach is innovative because young people often have very few claims or insurance history, making it difficult to rate them. Insurers tend to overcharge policies for drivers with no prior record.
AssurOne is seeking to gather this information in a new way. They relied on a startup that conducted extensive testing in Italy, confirming a very strong correlation between accident rates and certain behavioral axes.
At the end of the quiz, five behavioral axes are identified. The young insured receives this information and can choose whether or not to share it. If they choose to share, the insurer receives a code from them that allows for immediate coverage under two different formulas:
- If the young driver has a relatively good score, they will be insured immediately
- If their score is less favorable, the insurer will suggest a device and try to improve their driving by sending messages about prevention, challenges, etc.
Whether the client has a high score or not, whether they have a device or not, 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, with no discrimination against those who have a device.
How does the device work? (data collection, retrieval time, etc.)
As soon as the young person receives this device, they must install it themselves. Installation is fairly simple and quick with the help of the installation manual. Once installed, the insurer analyzes the young person’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 behavior.
Who can access this offer?
All young people up to 28 years old are eligible for the online offer (assuronline).
AssurOne has focused closely with their insurers and reinsurers on this niche.
The insurer wants to reach all young people wishing to build their no-claims bonus as early as possible, regardless of their parents.
They are also targeting young drivers who want affordable insurance when they consider their driving behavior to be reasonable on the road.
The rates will be particularly aggressive for:
- Very young drivers who just obtained their license at 18.
- Young people who took their license at 18 and have been inactive for 2 or 3 years. AssurOne’s offer is also available for these drivers.
Why are there so few offers for young drivers?
Insuring young people is quite challenging. It’s very difficult to insure them or for them to find insurers willing to cover them. Offering specific products for young drivers is a long process for insurers and distributors. AssurOne took almost a year to develop this offer.
It requires convincing of the company’s seriousness, showing how the auto insurance is managed, and demonstrating data management from an actuarial perspective.
Where can this offer be found?
The offer is distributed through partner brokers under a predefined contract.
The netvox brand distributes the policies. That is, the AssurOne group creates a number of offers within its management. These offers are then made available to brokers.
You can find this offer:
- Directly via Assuronline
- With automobile manufacturers through major partnerships
The distribution of this offer is currently multi-channel with an omni-channel trend.
Since when has the young driver offer existed?
It started in May 2020, at the end of the lockdown. There was obviously a testing phase beforehand due to technological development that needed to be adapted over time to fix bugs.
The offer launched gradually because AssurOne wanted to ensure everything was working correctly. Then there was a fairly rapid acceleration, with the company winning tenders with distributors that are very close to young people.
As of November 2020, nearly 4,000 contracts had been sold within 5 months.
Were you aware of the personality-based young driver insurance offer?
If you’re interested in this offer, get a quote now!
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