The Heritage Insurance Kenya is harnessing the power of data analytics, from its miles per usage-based telematics insurance solution, to calculate and issue refunds (cashback) and premium discounts to its insured motorists who are driving less, amid Covid-19 distress.
In this, motorists who have insured their vehicles with Heritage Insurance will benefit from a reduction in premiums, on the basis of reduced driving due to restriction of movement imposed by the Government of Kenya.
“This Covid-19 phase has raised a lot of questions for conventional insurance products. Kenyans are concerned that while their cars are stationary, insurers are still collecting premiums from them at normal rates. Usage and miles-based insurance provides a solution that allows us to peg pricing on vehicle use and driver behaviour and most importantly, cushion our clients in these tough economic times.”, said Godfrey Kioi, Heritage Insurance Kenya’s Managing Director
Insurance brokers have welcomed this move that cushions insurance policy holders.
“This discount is a material relief for customers, in these tough times. It is a clear demonstration of the use of innovation to drive data-based and intelligent pricing, for the benefit of both the insured and the insurer.”, said Mr Taj Thanawalla, Managing Director at H.G Thanawalla Insurance Brokers Limited.
The company has also announced a 7.5 per cent discount on the annual motor vehicle premium for customers converting to Auto Correct during the months of May, June and July. The Auto Correct Rewards Programme is a points-based loyalty programme that rewards drivers for good driving.
Further, the insurer has moved to reduce the monthly cost of their motor vehicle premiums by 15 per cent for motorists on the motor cover, for the months of May and June 2020.
The telematics system is built on a platform that integrates the Internet of Things (IoT) and Big Data.
Heritage’s Auto Correct is the first telematics-based insurance product in Kenya and exemplifies innovation in the sector.
However, the relief will be different for each customer based on their driving behavior and other characteristics captured by the telematics system.