Transparency is key to future of car insurance, says Drivology's

Nigel Lombard 

Transparent communications are vital to winning trust and providing car insurance that customers can engage with, according to Drivology managing director, Nigel Lombard. 

Speaking at Post Magazine's Insurance Telematics 2014 event, Nigel affirmed his view that putting policyholders in control by setting premiums according to driving behaviour is the future of car insurance. He also demonstrated this at a webinar in the lead up to the event. 

Nigel also spoke about the importance of simplicity in the way telematics-based insurance services are delivered. "Drivers already understand mobile apps," he said, referring to the latest advances in telematics technology. Using a smartphone mobile app to monitor driving behaviour can be cheaper and easier than installing a black box in a vehicle, which can be a costly and complex process. 

Continuing on the theme of transparency, Nigel cited utility and credit card bills as examples of how insurance costs should be presented to policyholders. When customers can see how their behaviour affects their costs, they are empowered to make changes that could save them money. 

Sponsored by SSP, the hour-long webinar was moderated by Post magazine editor-in-chief, Jonathan Swift. Also on the panel were Adrian Coupland, Head of Data Strategy, SSP, Robert Kelly, I.T Manager at Wunelli and Kenny Leitch, Global Telematics Director at RSA. 

Insurance Telematics 2014, hosted by Post Events took place on 30 April in London. At the event Nigel joined Mark Cliff, CEO Retail and Distribution at Ageas, Louise Williams, Commercial Manager, Telematics at Hastings Direct and Alastair Barter, Senior Policy Officer at the Information Commissioner's Office, to debate standardisation of telematics data and processes. 

The Drivology smartphone app uses GPS to record how, when and where users are driving. The app assesses factors such as speed, smoothness, consistency, road familiarity, road type and safe times and gives users a score from 1 to 100. Every driver starts with a score of 70, which can go up or down depending on driving behaviour. As drivers' scores increase, so can the discounts they receive against their insurance costs. The Autostart feature detects when the car is on the move and activates the app to record driver behaviour. This means policyholders don't need to start the app manually at the outset of every journey.

Before joining Drivology, potential policyholders can use the ‘try before you buy' feature to determine its potential benefits. Drivers receive a code based on the safety level of their driving. This is used to calculate their initial insurance premium.

Drivology uses the telematics data gathered by the app to adjust insurance policies every three months. Drivers will receive a statement to see how their driving has affected their premium and advance notice of any price changes.

The Drivology App and car insurance is available from confused.com and will be listed on comparethemarket.com from June 2014. It can also be downloaded via fromwww.drivology.co.uk, App Store and Google Play Store.

Watch the launch videohere

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Drivology – Backgrounder

Launched in 2014, Drivology is an innovative car insurance provider that looks to reduce the cost of motoring through technology and data. Using a telematics smartphone app, Drivology offers lower risk drivers lower insurance premiums.

Unlike the black box-based service currently deployed by many insurers, Drivology’s technology is entirely app based, and provides a clear picture of a drivers performance and driving behaviour. Telematics data gathered by the app is analysed and users’ insurance policies are adjusted quarterly to reflect the quality of their driving - a break from the traditional one-off discount after 200 miles. Alongside this policyholders with Drivology will not have to pay cancellation administration fees and they will have ‘no surprises’ driving statements with premium estimates.

Appealing to honest drivers who no longer wish to subsidise the high risk drivers aged 25 and over, Drivology rewards good drivers who represent a low insurance risk and want to have a direct influence over the premium they deserve to pay, opposed to paying more for their postcode, age or previous claims. Drivology believes this sector of the market has been largely overlooked in recent years as telematics products have focused mainly on younger, higher risk drivers.

The Drivology app offers the Autostart feature. Autostart detects when the car is moving and immediately begins to record driver performance. Uniquely, this removes the need for policyholders to consciously start the app at the outset of every journey. The Drivology app allows policyholders to upload photographic evidence of documents such as driver’s licences and no claims bonuses. The app also gives drivers recommendations - based on their performance and behaviour - to help them reduce their vehicle insurance premiums.

Before joining Drivology, potential policyholders can use the ‘try before you buy’ feature to determine its potential benefits. If the results are positive, drivers are given a discount code to quote when setting up their policy. 

Although the car insurance sector has been using telematics for some time, only now is the technology combining the accuracy of data that insurers need with the simplicity to ensure widespread user appeal. With Drivology, drivers simply download the app to their Smartphone device. 

The Drivology app was developed by Wunelli, who spent five years collecting driving behaviour data and invested heavily in data enhancement and app development capabilities to support the insurance sector. 

For more information on Drivology, visit www.drivology.co.uk

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