BMW has become one of the first major automakers to offer a factory-fitted, telematics-based insurance product, called FlexiMile, to its drivers.
Telematics Updated predicted that 2014 would be the year that sees automakers formalize their relationships across the insurance telematics industry. BMW is the first one to publically announce their plans this year. An extension of their partnership with the insurance carrier Allianz UK will see the insurer build a custom product for the BMQi3 and i8 electric vehicles. BWM Car Insurance will then offer the drivers of these cars one of two further insurance products: BMW FlexiMile and BMW Car Insurance – Unlimited miles. FlexiMile Insurance gives customers that drive up to 5,000 miles per annum a 25% lower premium. The customer’s mileage is tracked via an embedded usage-based insurance device, using BWM ConnectedDrive technology, and monthly statements are sent directly to the policyholder. The Unlimited miles insurance product is offered to customers who drive in excess of 5,000 miles per annum, offering a fixed premium for unlimited mileage cover. If either product proves not to be cost effective for the customer due to them driving more or fewer miles than expected, they can switch products without incurring additional charges.
There has been much debate over the nature that these automaker relationships will take, with many insurance carriers concerned about automakers “forming the first barrier to the data and having the first access to the clients walking into a showroom”, stated Ofir Eyal, Principal, Boston Consulting Group. This year will tell what relationships the automakers will form across the insurance industry.
To analyze how automakers will form relationships across the US insurance market, including laying out how already existing members of the community can benefit from this move, experts from Towers Watson, Liberty Mutual and Zurich will speak at Insurance Telematics USA 2014 (3-4 September at the Radisson Aqua Blu, Chicago, IL). Key topics include disruptive new entrants to market, such as automakers, sophisticated pricing models and insurance apps for consumers.
Progressive said about the conference: “Great opportunity to see all the major players in the telematics insurance space at one time”.
The Insurance Telematics USA Conference & Exhibition(3-4 September at the Radisson Aqua Blu, Chicago) unities the insurance, software and automotive industries to examine the steps needed to implement a UBI program with a strong business model and take it to the mass-market: the tipping point is just around the corner.
For the complete Insurance Telematics USA 2014 agenda and speaker line-up, visit: www.telematicsupdate.com/insurance-telematics/
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