“Pay How You Move” – a hyper-personalized mobility insurance based on a customer’s unique mobility profile
by Jenny Lou, Oliver Bath
Pay How You Move: hyper-personalized mobility insurance
Mobile telematics has opened up new business models like Pay As You Drive (PAYD) and Pay How You Drive (PHYD). UBI insurance allows insurers to charge based on each customer’s actual driving habits. But what comes next?
Pay How You Move enables customers to be covered when taking all types of transportation, such as bus, train, bike, car, scooter, and more. Insurance companies will offer a hyper-tailored premium based on the individual’s fluid mobility behavior:
- What modes of transportation customers are taking/using
- How much/how long (miles) customers are using it
- How safely customers are driving (behavior-based)
There are many features for insurers to build out a unique Pay How You Move offering, such as reward sustainable mobility behavior, monitoring CO2 emissions, reward safe drivers, covering physical injuries when using MaaS, covering loss/damage of property when using public transports, covering canceled train trips, etc.
A shift from Vehicle-centric to Human-centric
The fundamental principle behind Pay-As-You-Move mobility insurance is a shift from insuring the single vehicle towards covering an individual across multiple modes of transport.
Combining a human-centric approach with business strategy—rooted in data and analytics—is key to growth. According to Accenture, 89 percent of C-suite leaders acknowledge the value of embedding this combination at the heart of their business.
With the rise of shared mobility, increased focus on sustainable mobility, and a shift towards flexible workplaces, it is a perfect time for insurance innovators to further develop personalized and flexible insurance products that match these new mobility lifestyles.
The benefits of Pay How You Move
- Increased customer acquisition. Insurers can expand their customer base from “car owners/single-mode insurers” to “mobility users”.
- Increased customer retention. This is a flexible insurance solution that adapts to people’s changing mobility profile. Even when someone sold his/her car and moved to the city, they will still keep their mobility insurance.
- Manage risk better. By understanding the complete mobility behavior of the customers, insurers can better manage risk on a per-person basis.
- Actively contribute towards sustainability. A better understanding of a customer’s complete mobility profile enables insurers to proactively encourage sustainable mobility (walking, biking, or public transports) while reducing exposure to risk.
- Personalized pricing. Consumers enjoy personalized pricing tailored for their dynamic individual mobility behavior.
- Single policy management. Instead of having to manage multiple policies, customers can now have this personalized single policy that covers all of their mobility.
- Value-added mobility features. A full mobility profile enables the customer to receive exciting and valuable mobility features such as coaching, family safety, carbon tracking.
A safer and sustainable world
In our fast-moving world, we see a promising alignment between insurers and the insured for a safer and more sustainable future. With today’s technologies and aligned intentions, everybody can be the benefactor of new and exciting insurance models like Pay How You Move.