IBM has signed a deal that seeks to provide UK motorists with an innovative telematics-based ‘pay as you drive’ insurance premium payment scheme. The deal is with UK car insurance provider Norwich Union and telecommunications infrastructure company Orange UK.
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The venture will see data collected from a telematic device in a customer’s car and an insurance premium calculated based on when, where and how often the car is used.
IBM has been chosen by Norwich Union to provide the telematic architecture, hardware and software, and device specifications.
Orange UK, a mobile communications company, will supply the telecommunications network infrastructure. The Orange network will transmit data from vehicles to Norwich Union.
Robert Ledger, ‘Pay As You Drive’ programme director at Norwich Union, said: “Behind the scenes, we have taken the time to choose the right partners. This is a major research and development programme with Norwich Union customers, and it is essential we have leading experts in these industries with proven ability to deliver as well as maintain superior customer focus.
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By GlobalData“Both IBM and Orange have shown the pedigree and vision to work with us on this exciting venture.”
Bill Pieroni, general manager for IBM Global Insurance Industry, said: “Telematics technology is already proving its tremendous value to drivers and passengers with added safety features, new services, and entertainment. Now we want to help determine whether this on-demand approach to insurance coupled with IBM services and infrastructure can benefit the insurance industry and motorists with more accurate insurance premiums based on actual vehicle usage.
“This is a clear example of how IBM can bring together its world-leading technology expertise to help new partnerships across different industries forge pioneering product and service innovation.”
Neil Laidler, head of corporate customer development, Orange Business Solutions, added: “Orange is committed to delivering innovative services that simplistically enhance people’s lives. We are delighted to bring what we have learnt from developing ‘pay-as-you-talk’ solutions to help Norwich Union deliver a revolutionary insurance service to its customers.”
Norwich Union has an exclusive agreement covering the UK and Europe with US insurer Progressive to use data collected via telematic technology and the company’s pricing method to calculate premiums.
‘Pay As You Drive’ will be piloted this year with 5,000 volunteer motorists.
