http://www.insurancetech.com/management-strategies/232200670
http://www.insurancetech.com/management-strategies/232200670
11 Burning Insurance Industry Questions That Will Be Answered in 2012
Insurers enter the new year facing many questions about regulation, technology trends and more. Not all the answers will emerge this year, but I&T provides clarity on some of the most pressing unknowns.
Insurers enter the new year at a crossroads in many ways. Technologies such as mobile that once were considered "emerging" or "curiosities" now are bleeding from the marketing department into the enterprise and have become table stakes in many cases. Further, legacy systems -- no longer seen as mere annoyances, but rather as inhibitors that prevent much-needed growth -- are spurring major investments in core systems replacement projects. And the environment in which all of this is taking place is itself in flux as new regulation and vendor and insurer consolidation reshape the status quo.
These developments raise many critical questions for insurance companies. While we may not get answers in 2012 to all of the questions facing the industry, we surely will see some clarity on many of them. I&T offers insights into 11 unknowns that are likely to shape the insurance industry in the coming year.
4. How Will Social Media Be Used Beyond Marketing?
Several industry consultants and analysts have pointed out that social media often contains public, unstructured data that insurers can use. While privacy and resource issues have prevented many carriers from looking too closely at the information, the industry enters 2012 with several software vendors offering products to help analyze unstructured social media data -- perhaps signaling an uptake in this kind of use.
"The industry will move slowly on it, but I think there's a lot of hype and education and awareness," says Strategy Meets Action founder Deb Smallwood. "It's amazing how many software companies are out there working on this."
Recent SMA research indicates that 24 percent of insurance companies are evaluating using social data in claims and 26 percent are evaluating it for underwriting. Celent (Boston) has been examining the phenomenon as well, and Celent insurance analyst Craig Beattie says it's important for insurers to tread carefully at first. "There's a risk here that if underwriters start using social to penalize people, they'll lock down all the data in social networking sites," he says.
Beattie recommends a reward-based approach to using social to establish a risk profile -- at least in the short term. "There's a generation of people coming up now who share everything with their friends," he notes. "The interesting challenge will be what service offering or what incentive will insurers have to offer to let them see what they're doing." --N.G.
5. Will Usage-Based Insurance Finally Take Hold?
Social media isn't the only way insurers have tried to get a more holistic view of their policyholders. For a decade or so, auto carriers (led most notably by Progressive) have tried to get telematics-powered, usage-based insurance to catch on. This year, while Progressive rolled out its Snapshot program in all 50 states, other major carriers -- including Allstate and State Farm -- launched their own versions of usage-based offerings, indicating that the industry sees this market poised for growth.
Robin Harbage, director for Towers Watson, says the time is right for usage-based insurance to gain traction. "It's just a question of enough choices out there for consumers that it starts to become ubiquitous," he says. "There are 18 states that have four or more usage-based insurance products available."
The most popular way for telematics data to be collected is still the insurer-provided proprietary device that plugs into a car's onboard computer. While there have been some rumblings that alternate means of collection might be employed -- either by using OEM services such as GM's OnStar or the always-on, location-aware smartphone -- those solutions are still a while off at best, Harbage says. "The reason it's developing with the proprietary device is largely because of the need for control of the data. If you're going with OnStar, you can only use what data they're willing to provide you in the way they're willing to provide it," he explains.
"Smartphone technology is clearly something people are interested in leveraging in order to do this," Harbage continues. "But it's just not always clear at this point how the vehicle is associated with the smartphone." --N.G.
Wednesday, December 14, 2011
USA hartford enter UBI with Truelane
http://www.marketwatch.com/story/hartford-to-enter-pay-as-you-drive-arena-2011-12-08
NEW YORK (MarketWatch) -- Hartford Financial Services Group Inc. HIG -2.42% plans to launch a pilot program next year to price auto insurance using an onboard device that measures how well its policyholders drive.
The program, called TrueLane, will roll out "in the first half of 2012," said Andy Napoli, the president of Hartford's consumer markets division, in a presentation to investors Thursday.
TrueLane puts Hartford in the company of insurers including Allstate Corp. ALL -1.25% , Travelers Cos. TRV +0.18% and State Farm Mutual Automobile Insurance Co., which have been rolling out discount programs based on measurements of their policyholders' driving habits.
Insurer Progressive Corp. PGR -0.66% leads the field with its Snapshot program, available in most U.S. states. It uses a small device that plugs into a car's onboard diagnostic computer to measure when policyholders use their vehicles, how far they drive and how hard they brake. Customers who volunteer to install the device can get a markdown on their auto insurance of as much as 30%. Currently, Progressive won't raise rates on drivers based on the information it collects.
Auto insurers have typically evaluated potential customers by comparing them with others who share similar characteristics. Young single men, for example, have a substantially higher chance of getting in an accident than other demographic groups, and typically pay higher premiums. About a decade ago, Progressive led a trend toward incorporating credit scores as a metric for measuring the likelihood that a customer will submit a claim.
But data from an individual driver, collected with a so-called telematics device in real time, trump any effort to pool people with similar characteristics. With an onboard device, insurers can offer discounts to people who drive in a safer manner than the usual metrics would suggest. They might find a young single man who shows signs of being a defensive driver, someone who uses the car only on weekends, or others whose habits wouldn't be revealed by the standard information insurers gather about their customers.
Napoli, who announced the Hartford pilot program at the company's annual investor day, said the TrueLane program will help "us to stay at the leading edge of pricing sophistication."
"The data is compelling," he said. "This capability has really redefined the way we think about pricing auto."
Insurers that don't use telematics to price auto coverage will eventually attract poor drivers who were turned down for coverage by the insurers that do, Napoli said
NEW YORK (MarketWatch) -- Hartford Financial Services Group Inc. HIG -2.42% plans to launch a pilot program next year to price auto insurance using an onboard device that measures how well its policyholders drive.
The program, called TrueLane, will roll out "in the first half of 2012," said Andy Napoli, the president of Hartford's consumer markets division, in a presentation to investors Thursday.
TrueLane puts Hartford in the company of insurers including Allstate Corp. ALL -1.25% , Travelers Cos. TRV +0.18% and State Farm Mutual Automobile Insurance Co., which have been rolling out discount programs based on measurements of their policyholders' driving habits.
Insurer Progressive Corp. PGR -0.66% leads the field with its Snapshot program, available in most U.S. states. It uses a small device that plugs into a car's onboard diagnostic computer to measure when policyholders use their vehicles, how far they drive and how hard they brake. Customers who volunteer to install the device can get a markdown on their auto insurance of as much as 30%. Currently, Progressive won't raise rates on drivers based on the information it collects.
Auto insurers have typically evaluated potential customers by comparing them with others who share similar characteristics. Young single men, for example, have a substantially higher chance of getting in an accident than other demographic groups, and typically pay higher premiums. About a decade ago, Progressive led a trend toward incorporating credit scores as a metric for measuring the likelihood that a customer will submit a claim.
But data from an individual driver, collected with a so-called telematics device in real time, trump any effort to pool people with similar characteristics. With an onboard device, insurers can offer discounts to people who drive in a safer manner than the usual metrics would suggest. They might find a young single man who shows signs of being a defensive driver, someone who uses the car only on weekends, or others whose habits wouldn't be revealed by the standard information insurers gather about their customers.
Napoli, who announced the Hartford pilot program at the company's annual investor day, said the TrueLane program will help "us to stay at the leading edge of pricing sophistication."
"The data is compelling," he said. "This capability has really redefined the way we think about pricing auto."
Insurers that don't use telematics to price auto coverage will eventually attract poor drivers who were turned down for coverage by the insurers that do, Napoli said
Are We Safe Drivers? Americans Say Yes
http://www.cnbc.com/id/45583263
Given the steady flow of headlines about distracted driving and how American drivers seem more interested in everything but staying focused behind the wheel, a new study on how we see ourselves paints an interesting picture.
Progressive Insurance [PGR 17.99 -0.12 (-0.66%) ] commissioned Harris Interactive to poll just over a thousand Americans about their driving habits.
Here's how those drivers view themselves behind the wheel:
84 percent of drivers define themselves as cautious (49%) or defensive (35%)
82 percent of those surveyed said they either leave at least two car lengths between their car and the car in front of them (49 percent) or follow the 2-3 second rule (33 percent).
Approaching a yellow light, two-thirds of drivers (63 percent) say they slow down and prepare to come to a full stop.
In the past three years, 72 percent of drivers have not been in an accident or received a moving violation.
Progressive Insurance says the survey shows many Americans could and should qualify for lower insurance rates because they follow safety guidelines on a regular basis. The company has been promoting its Snapshot service, which is a device installed in your car that monitors your driving habits. The safer you drive, the less money you pay for insurance.
What I find intriguing about this survey is how Americans see themselves behind the wheel.
In my experience, most people give themselves way too much credit for consistently following the rules of the road. In fact, I've ridden with people who complain about how everyone else is aggressive on the road and then they go forward and cut people off with regularity.
So you tell me by taking our poll - or by leaving a comment; do you think most people have an accurate view of how they drive? Or are they out of touch with reality?
Given the steady flow of headlines about distracted driving and how American drivers seem more interested in everything but staying focused behind the wheel, a new study on how we see ourselves paints an interesting picture.
Progressive Insurance [PGR 17.99 -0.12 (-0.66%) ] commissioned Harris Interactive to poll just over a thousand Americans about their driving habits.
Here's how those drivers view themselves behind the wheel:
84 percent of drivers define themselves as cautious (49%) or defensive (35%)
82 percent of those surveyed said they either leave at least two car lengths between their car and the car in front of them (49 percent) or follow the 2-3 second rule (33 percent).
Approaching a yellow light, two-thirds of drivers (63 percent) say they slow down and prepare to come to a full stop.
In the past three years, 72 percent of drivers have not been in an accident or received a moving violation.
Progressive Insurance says the survey shows many Americans could and should qualify for lower insurance rates because they follow safety guidelines on a regular basis. The company has been promoting its Snapshot service, which is a device installed in your car that monitors your driving habits. The safer you drive, the less money you pay for insurance.
What I find intriguing about this survey is how Americans see themselves behind the wheel.
In my experience, most people give themselves way too much credit for consistently following the rules of the road. In fact, I've ridden with people who complain about how everyone else is aggressive on the road and then they go forward and cut people off with regularity.
So you tell me by taking our poll - or by leaving a comment; do you think most people have an accurate view of how they drive? Or are they out of touch with reality?
Insurance telematics: early adopters need to know the facts
http://www.fleetnews.co.uk/blog/entry/insurance-telematics-early-adopters-need-to-know-the-facts/41714/
Linden Holliday, CEO of MyDrive Solutions, explains that early adopters of this new technology need to be fully aware of the range and limitations of those products that are first to market.
What is insurance telematics?
Insurance telematics is the process by which data is collected and analysed to enable driver behaviour to be assessed, and the level of risk presented by each individual to be calculated.
This allows an insurance company to assess individual risk much more accurately and therefore provide a much fairer price to the proposer.
Why has it become important now?
Telematics in the car insurance industry has now become a practical option through the reduction in the base price of the technology for in-car monitoring.
Secondly, legislative changes are increasingly impacting the industry. The European Court of Justice’s gender ruling in March means that from December 2011, car insurance companies will lose the ability to price differentially when it comes to gender.
For example, the current average first time driver insurance policy for a 17-year old male who has just passed his test is £4,400. His female counterpart can be insured for the first year at an average cost of £2700.*
As of next year however, car insurers will no longer be able to price car insurance premiums based on the gender of the individual driver. There is also a possibility that car insurance companies will soon lose the ability to differentiate by age.
As such, car insurers need a different means by which to assess risk and price insurance premiums accordingly, and through the analysis of behavioural data driven by insurance telematics, this has now become entirely possible.
Why is the direction that the industry is currently taking fundamentally flawed?
Early arrivals in this market place are balancing the available technology and the bandwidth – the ability to transfer data from the car to a server via the telecoms network
Providers have tried to minimise the amount of data that must be collected in order to make a prediction on driver ability.
The first suppliers to market have opted for low volume transmission of data – sampling typically every 30 seconds and additionally, exceptional events. We believe this rate of sampling is too low to enable a true picture of the driver’s behaviour to be established, and the exceptions themselves are typically set at an arbitrary level by the insurer, with no objective basis for determining what a true exceptional driving manoeuvre is.
The currently available “pay how you drive” propositions are somewhat better than the current proxies that car insurers are using to price risk. However, going down the 30 second logging, exception-based route will never lead to true understanding of individual driver behaviour.
One second data logging
It is possible to measure driving behaviour at a much more granular level using one second data logging.
The amount of data collected is significantly larger than that gathered by using the exception-based approach, and if done correctly, the increase in data will not swamp IT resources.
This results in a much more accurate view of driving behaviour, and therefore risk.
This allows the car insurance company to provide a more detailed assessment of the risk presented, and importantly gives the driver the information required to understand how they drive, and to work on improvements as necessary.
Furthermore, a more frequent measurement allows the company to see many more discrete behaviours, some of which might be missed by 30 second logging.
Contextualising driver behaviour
Knowledge of driving behaviour is of little value when it cannot be related to the location of the individual and the type of roads on which he is driving. Indeed, the value of driving behaviour can only be truly derived when it is contextualised to the underlying road network.
Using GPS data allows car insurers to analyse what type of roads their drivers are most likely to spend time on, and thus assess the associated risk they present.
A driver who spends the majority of time driving on motorways, for instance, is in fact around six times less likely to have an accident than a driver spending the same amount of time on open rural roads, whereas a driver who consistently spends time on the road after 11pm is approximately three times more likely to have a fatal accident than a driver who simply uses his car to commute in daylight hours.
Without the ability to relate this wealth of information back to the actual driving behaviour that has been recorded, how is the car insurer to assess the level of risk presented to him?
It is important that driving behaviour is always contextualised in relation to the road network, and specifically, the time of driving and the location of the car (which itself allows the insurer to understand exactly what hazards (roundabouts, junctions, bends etc) the driver is negotiating, and with what level of competence. Only by the utilisation of GPS data and cross referencing to the map can this be done effectively.
Conclusion
With the advent of insurance telematics the possibilities have rapidly opened up to allow car insurers to treat each of their drivers as the individual that they are, rather than merely as averaged pools.
However, early adopters of the technology are frantically trying to minimise the amount of data that has to be collected to make an accurate assessment of the actual risk presented by using 30 second data logging. This will never lead to true understanding of individual driver behaviour.
If car insurance companies do wish to drill down into the data to such a level that they understand the risk presented by each individual driver; they must pull together a number of capabilities.
These include behavioural data as derived by a minimum of one second logging, geographical data as determined by GPS data, and psychological expertise to assess why drivers behave in the manner that they do on the road.
Until all of these criteria have been brought together and analysed as a complete picture, we don’t believe car insurance companies will be able to understand the risk presented by individual drivers.
* As reported on BBC News, “Insurance and pension costs hit by ECJ gender ruling,” 1st March 2011- http://www.bbc.co.uk/news/business-12606610
Linden Holliday, CEO of MyDrive Solutions, explains that early adopters of this new technology need to be fully aware of the range and limitations of those products that are first to market.
What is insurance telematics?
Insurance telematics is the process by which data is collected and analysed to enable driver behaviour to be assessed, and the level of risk presented by each individual to be calculated.
This allows an insurance company to assess individual risk much more accurately and therefore provide a much fairer price to the proposer.
Why has it become important now?
Telematics in the car insurance industry has now become a practical option through the reduction in the base price of the technology for in-car monitoring.
Secondly, legislative changes are increasingly impacting the industry. The European Court of Justice’s gender ruling in March means that from December 2011, car insurance companies will lose the ability to price differentially when it comes to gender.
For example, the current average first time driver insurance policy for a 17-year old male who has just passed his test is £4,400. His female counterpart can be insured for the first year at an average cost of £2700.*
As of next year however, car insurers will no longer be able to price car insurance premiums based on the gender of the individual driver. There is also a possibility that car insurance companies will soon lose the ability to differentiate by age.
As such, car insurers need a different means by which to assess risk and price insurance premiums accordingly, and through the analysis of behavioural data driven by insurance telematics, this has now become entirely possible.
Why is the direction that the industry is currently taking fundamentally flawed?
Early arrivals in this market place are balancing the available technology and the bandwidth – the ability to transfer data from the car to a server via the telecoms network
Providers have tried to minimise the amount of data that must be collected in order to make a prediction on driver ability.
The first suppliers to market have opted for low volume transmission of data – sampling typically every 30 seconds and additionally, exceptional events. We believe this rate of sampling is too low to enable a true picture of the driver’s behaviour to be established, and the exceptions themselves are typically set at an arbitrary level by the insurer, with no objective basis for determining what a true exceptional driving manoeuvre is.
The currently available “pay how you drive” propositions are somewhat better than the current proxies that car insurers are using to price risk. However, going down the 30 second logging, exception-based route will never lead to true understanding of individual driver behaviour.
One second data logging
It is possible to measure driving behaviour at a much more granular level using one second data logging.
The amount of data collected is significantly larger than that gathered by using the exception-based approach, and if done correctly, the increase in data will not swamp IT resources.
This results in a much more accurate view of driving behaviour, and therefore risk.
This allows the car insurance company to provide a more detailed assessment of the risk presented, and importantly gives the driver the information required to understand how they drive, and to work on improvements as necessary.
Furthermore, a more frequent measurement allows the company to see many more discrete behaviours, some of which might be missed by 30 second logging.
Contextualising driver behaviour
Knowledge of driving behaviour is of little value when it cannot be related to the location of the individual and the type of roads on which he is driving. Indeed, the value of driving behaviour can only be truly derived when it is contextualised to the underlying road network.
Using GPS data allows car insurers to analyse what type of roads their drivers are most likely to spend time on, and thus assess the associated risk they present.
A driver who spends the majority of time driving on motorways, for instance, is in fact around six times less likely to have an accident than a driver spending the same amount of time on open rural roads, whereas a driver who consistently spends time on the road after 11pm is approximately three times more likely to have a fatal accident than a driver who simply uses his car to commute in daylight hours.
Without the ability to relate this wealth of information back to the actual driving behaviour that has been recorded, how is the car insurer to assess the level of risk presented to him?
It is important that driving behaviour is always contextualised in relation to the road network, and specifically, the time of driving and the location of the car (which itself allows the insurer to understand exactly what hazards (roundabouts, junctions, bends etc) the driver is negotiating, and with what level of competence. Only by the utilisation of GPS data and cross referencing to the map can this be done effectively.
Conclusion
With the advent of insurance telematics the possibilities have rapidly opened up to allow car insurers to treat each of their drivers as the individual that they are, rather than merely as averaged pools.
However, early adopters of the technology are frantically trying to minimise the amount of data that has to be collected to make an accurate assessment of the actual risk presented by using 30 second data logging. This will never lead to true understanding of individual driver behaviour.
If car insurance companies do wish to drill down into the data to such a level that they understand the risk presented by each individual driver; they must pull together a number of capabilities.
These include behavioural data as derived by a minimum of one second logging, geographical data as determined by GPS data, and psychological expertise to assess why drivers behave in the manner that they do on the road.
Until all of these criteria have been brought together and analysed as a complete picture, we don’t believe car insurance companies will be able to understand the risk presented by individual drivers.
* As reported on BBC News, “Insurance and pension costs hit by ECJ gender ruling,” 1st March 2011- http://www.bbc.co.uk/news/business-12606610
Thursday, November 10, 2011
Towers Watson To Expand DriveAbilitySM Program
http://www.thestreet.com/story/11302142/1/towers-watson-to-expand-driveabilitysm-program.html
With an increasing number of automobile insurers implementing usage-based insurance (UBI) products that analyze data from in-car devices (telematics), global professional services company Towers Watson (NYSE, NASDAQ: TW) has made several senior appointments to lead the wider rollout of its DriveAbility SM program.
DriveAbility provides strategic, logistic and analytical support to enable insurers to create products that are priced according to monitored driver behaviors and help policyholders improve driving habits. To date, the company has mainly focused on the U.S., where it has created a hosted data service for a pool of participating U.S. insurers. This has resulted in the analysis of millions of individual journeys so far.
The international DriveAbility program will be led by Geoff Werner, a Towers Watson director. Other Towers Watson UBI veterans leading the team are Robin Harbage, sales and marketing; Eric Shishko, operations and product; and Tony Lovick, analytics.
Rory O’Brien, global head of Towers Watson’s Risk Consulting and Software business, said the intention is to help companies adapt to a completely different business model for car insurance.
“Our experience, not only in the U.S. but also in Europe, means we can help insurers avoid the potholes on the way to developing attractive and profitable UBI products,” said O’Brien. “We add significant value in the sophistication of the analytics we help clients apply to the massive volumes of data that are typically generated. In addition, we help clients navigate unfamiliar regulatory and technological issues to tailor a complicated product to each company’s particular brand.”
The level of interest in UBI in the U.S. is reflected in the fact that every state except Hawaii now has at least one product available to vehicle owners. Several products have also been launched in the Canada, Israel, Italy, Japan, South Africa and the U.K.
“In our opinion, the products that already exist have only scratched the surface of the potential of this market,” said O’Brien. “With the pressures on profitability that car insurers in many parts of the world face, the ability to harness telematic capability could lead to a revolution in the way that automobile insurance is offered.”
With an increasing number of automobile insurers implementing usage-based insurance (UBI) products that analyze data from in-car devices (telematics), global professional services company Towers Watson (NYSE, NASDAQ: TW) has made several senior appointments to lead the wider rollout of its DriveAbility SM program.
DriveAbility provides strategic, logistic and analytical support to enable insurers to create products that are priced according to monitored driver behaviors and help policyholders improve driving habits. To date, the company has mainly focused on the U.S., where it has created a hosted data service for a pool of participating U.S. insurers. This has resulted in the analysis of millions of individual journeys so far.
The international DriveAbility program will be led by Geoff Werner, a Towers Watson director. Other Towers Watson UBI veterans leading the team are Robin Harbage, sales and marketing; Eric Shishko, operations and product; and Tony Lovick, analytics.
Rory O’Brien, global head of Towers Watson’s Risk Consulting and Software business, said the intention is to help companies adapt to a completely different business model for car insurance.
“Our experience, not only in the U.S. but also in Europe, means we can help insurers avoid the potholes on the way to developing attractive and profitable UBI products,” said O’Brien. “We add significant value in the sophistication of the analytics we help clients apply to the massive volumes of data that are typically generated. In addition, we help clients navigate unfamiliar regulatory and technological issues to tailor a complicated product to each company’s particular brand.”
The level of interest in UBI in the U.S. is reflected in the fact that every state except Hawaii now has at least one product available to vehicle owners. Several products have also been launched in the Canada, Israel, Italy, Japan, South Africa and the U.K.
“In our opinion, the products that already exist have only scratched the surface of the potential of this market,” said O’Brien. “With the pressures on profitability that car insurers in many parts of the world face, the ability to harness telematic capability could lead to a revolution in the way that automobile insurance is offered.”
USA Progressive CEO: Snapshot Results ‘Appealing’
NU Online News Service, Nov. 8, 3:03 p.m. EST
Progressive’s chief executive says the company doesn’t have a lot of data, but it knows it has something “very appealing” in its Snapshot product.
During a conference call to discuss third-quarter earnings, Chief Executive Officer Glenn Renwick told analysts the take-up rate for the Snapshot product is “very good” and the “overall retention is up meaningfully,” exceeding the auto insurer’s estimates.
Using a small device that drivers plug into a car's diagnostic system, Snapshot tracks driver mileage, time of day and hard braking practices. After 6 months, the driver returns the device to Progressive to see if the data earns the driver discounts.
Many have received discounts, Renwick reported.
In an increasingly rate-positive insurance environment, Renwick said the product could have more importance as a tool to allow consumers to “control their own rate level.”
The insurer distributes its insurance products directly and through agents, who are competing with each other to come up with the best pitch for Snapshot, Renwick said.
Agency sales of Snapshot have lagged direct sales but Renwick said he hopes the product becomes a good thing for agents.
“I suspect it’ll just take some time in the marketplace,” he said. “As it plays out, agents should be more willing to get on board.”
The company’s advertising has been effective in communicating the product to customers, and it is hoped that once there is a wider acceptance, Snapshot will be easier for agents to sell to consumers.
Agency business grew 2 percent during the third quarter this year compared to last year. Direct business grew 5 percent.
Third-quarter net income fell more than 40 percent to $150.7 million compared to $261.1 million a year ago during the same quarter.
Progressive reported a net realized loss on securities investments of $52.6 million during the third quarter.
The company incurred about $63 million in third-quarter catastrophe losses, including about $20 million from Hurricane Irene.
Net premiums written and policies-in-force grew 4 percent and 5 percent, respectively, compared to the third quarter in 2010.
Progressive’s chief executive says the company doesn’t have a lot of data, but it knows it has something “very appealing” in its Snapshot product.
During a conference call to discuss third-quarter earnings, Chief Executive Officer Glenn Renwick told analysts the take-up rate for the Snapshot product is “very good” and the “overall retention is up meaningfully,” exceeding the auto insurer’s estimates.
Using a small device that drivers plug into a car's diagnostic system, Snapshot tracks driver mileage, time of day and hard braking practices. After 6 months, the driver returns the device to Progressive to see if the data earns the driver discounts.
Many have received discounts, Renwick reported.
In an increasingly rate-positive insurance environment, Renwick said the product could have more importance as a tool to allow consumers to “control their own rate level.”
The insurer distributes its insurance products directly and through agents, who are competing with each other to come up with the best pitch for Snapshot, Renwick said.
Agency sales of Snapshot have lagged direct sales but Renwick said he hopes the product becomes a good thing for agents.
“I suspect it’ll just take some time in the marketplace,” he said. “As it plays out, agents should be more willing to get on board.”
The company’s advertising has been effective in communicating the product to customers, and it is hoped that once there is a wider acceptance, Snapshot will be easier for agents to sell to consumers.
Agency business grew 2 percent during the third quarter this year compared to last year. Direct business grew 5 percent.
Third-quarter net income fell more than 40 percent to $150.7 million compared to $261.1 million a year ago during the same quarter.
Progressive reported a net realized loss on securities investments of $52.6 million during the third quarter.
The company incurred about $63 million in third-quarter catastrophe losses, including about $20 million from Hurricane Irene.
Net premiums written and policies-in-force grew 4 percent and 5 percent, respectively, compared to the third quarter in 2010.
nsw State Government puts Western Sydney P-plate drivers put on notice
http://express.whereilive.com.au/news/story/state-government-puts-western-sydney-p-plate-drivers-put-on-notice/
YOUNG drivers take note: you’re officially on notice.
The state government is conducting a road safety trial targeting the behaviour of Western Sydney p-platers. Roads Minister Duncan Gay said young Western Sydney drivers were over-represented in NSW accident statistics.
They had accounted for 28 fatal crashes and thousands of injuries in the past two years, he added.
TELL US: Will this program change driver behaviour? Comment below
The P-Plate Drivers Project, a joint initiative of the RTA, the Transport Accident Commission, the NRMA, and other bodies, will recruit P-platers to take part in a series of “behaviour change-oriented driver education” aimed at changing those figures.
Drivers will be put through an eight-hour course that looks at risk awareness, risk factors and safety. They will then go on the road for a two-hour practical driving session.
rather than simply teaching them how to drive. Following the course work they are then put on the road for a two hour practical driving session.
“A key performance indicator for the project is to see whether a minimum 10 per cent reduction in crashes can be achieved,” Mr Gay said.
The young drivers will also have to undertake a self-assessment to gauge their own driving behaviour.
DRIVER EDUCATION
WHO: P-platers will be recruited to join a trial project to change driver behaviour
HOW: An eight-hour course focusing on risk awareness and road safety followed by a two-hour driving session
YOUNG drivers take note: you’re officially on notice.
The state government is conducting a road safety trial targeting the behaviour of Western Sydney p-platers. Roads Minister Duncan Gay said young Western Sydney drivers were over-represented in NSW accident statistics.
They had accounted for 28 fatal crashes and thousands of injuries in the past two years, he added.
TELL US: Will this program change driver behaviour? Comment below
The P-Plate Drivers Project, a joint initiative of the RTA, the Transport Accident Commission, the NRMA, and other bodies, will recruit P-platers to take part in a series of “behaviour change-oriented driver education” aimed at changing those figures.
Drivers will be put through an eight-hour course that looks at risk awareness, risk factors and safety. They will then go on the road for a two-hour practical driving session.
rather than simply teaching them how to drive. Following the course work they are then put on the road for a two hour practical driving session.
“A key performance indicator for the project is to see whether a minimum 10 per cent reduction in crashes can be achieved,” Mr Gay said.
The young drivers will also have to undertake a self-assessment to gauge their own driving behaviour.
DRIVER EDUCATION
WHO: P-platers will be recruited to join a trial project to change driver behaviour
HOW: An eight-hour course focusing on risk awareness and road safety followed by a two-hour driving session
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