Article date: 20 February 2002
Norwich Union is set to revolutionise motor insurance with theannouncement today (20 February 2002) that it will be piloting 'PayAs You Drive'™ insurance.
In an exclusive arrangement covering the UK and Europe, NorwichUnion will be able to collect real-time vehicle data using a‘black box’ device installed in customers’vehicles. This will allow monthly insurance payments to becalculated based on how often, when and where a customer’svehicle is actually used.
Norwich Union believes the agreement - signed with pioneer USinsurer, Progressive - represents a major breakthrough in thecalculation of fairer motor insurance premiums and ultimately givescustomers greater control, flexibility and choice.
And research commissioned by Norwich Union shows that motoristsstrongly support the introduction of ‘Pay As YouDrive’™ insurance.
Nine in ten people say they would prefer their motor insuranceto reflect the usage of their car and the type of journeys theymake - with the majority favouring pay as you go systems similar tothose offered by gas and electricity suppliers.
Robert Ledger, programme director for Norwich Union, said:“As a market leader we are always looking to develop newopportunities to deliver greater value and choice to our customersand we believe ‘Pay As You Drive’™ insurance isthe future.
“Customers choosing ‘Pay As You Drive’™insurance will benefit from individual premiums based on how theyactually use their cars. Motorists would receive a fairer deal asthis initiative provides them with the opportunity to really be inthe driving seat when it comes to controlling theirpremiums.”
“’Pay as your Drive’™ insurance is smartbecause it gives customers control over the cost of their carinsurance”, said Mark Connelly, general manager, Progressive.“We are thrilled that Norwich Union recognises thatinnovation can – and should – benefitcustomers.”
The black box device measures vehicle usage and sends datadirectly to Norwich Union using similar technology to that used bymobile phones. Customers could be billed monthly and the technologywill also allow the insurer to offer complementary in-car services,such as emergency assistance and real-time route planning.
Norwich Union is the only insurer working with Progressive inEurope to pilot ‘Pay As You Drive’™ insuranceusing this technology. Following an extensive consultation period5,000 motorists will be recruited later this year to test customerbenefits of ‘Pay As You Drive’™ insurance anddemand for associated services.
Customers can register their interest in Norwich Union‘Pay As You Drive’™ insurance by e-mailing theircontact details to firstname.lastname@example.org
Matthew Buchanan/Jane Wheeler at QBO on
020 7379 0304 or Jenny Chapman/Liz Kennett at Norwich
Union on 08703 66 68 64
Notes to Editors:
- Norwich Union is the UK’s largest insurer. In generalinsurance it is more than 1.5 times the size of its nearestcompetitor, and has a 19 per cent share of the market.
- It has a focus on insurance for individuals and smallbusinesses. It insures:
· one in five households
· one in five motor vehicles
· more than 700,000 businesses
- Norwich Union products are available through a variety ofdistribution channels including brokers, corporate partners suchas banks and building societies, and Norwich Union Direct.
- Norwich Union’s news releases are available on thisinternet site
- A photograph is available via ISDN from the press office.
- A selection of other images is available from the CGNUNewscast site at www.newscast.co.uk
- An ISDN facility is available for studio quality broadcasts.Call the press office on 08703 66 68 68
- Norwich Union Insurance Limited Registered in England Number99122 Registered Office 8 Surrey Street Norwich NR1 3NG
- Member of the CGNU Group of companies and of the GeneralInsurance Standards Council
For all life & pensions media enquiries 08703 66 68 73 Forall other media enquiries 08703 66 68 68
- Progressive (NYSE:PGR), with headquarters in Mayfield Village,Ohio, is the fourth largest motor insurance company in the US. Inbusiness since 1937, the company provides all drivers in 48 USstates and the District of Columbia with competitive rates and 24hour, in-person and online services.