Norwich Union is set to revolutionise motor insurance with the announcement today (20 February 2002) that it will be piloting 'Pay As You Drive'™ insurance.
Norwich Union is set to revolutionise motor insurance with the announcement today (20 February 2002) that it will be piloting 'Pay As You Drive'™ insurance.
In an exclusive arrangement covering the UK and Europe, Norwich Union 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 be calculated based on how often, when and where a customer’s vehicle is actually used.
Norwich Union believes the agreement - signed with pioneer US insurer, Progressive - represents a major breakthrough in the calculation of fairer motor insurance premiums and ultimately gives customers greater control, flexibility and choice.
And research commissioned by Norwich Union shows that motorists strongly support the introduction of ‘Pay As You Drive’™ insurance.
Nine in ten people say they would prefer their motor insurance to reflect the usage of their car and the type of journeys they make - with the majority favouring pay as you go systems similar to those offered by gas and electricity suppliers.
Robert Ledger, programme director for Norwich Union, said: “As a market leader we are always looking to develop new opportunities to deliver greater value and choice to our customers and we believe ‘Pay As You Drive’™ insurance is the future.
“Customers choosing ‘Pay As You Drive’™ insurance will benefit from individual premiums based on how they actually use their cars. Motorists would receive a fairer deal as this initiative provides them with the opportunity to really be in the driving seat when it comes to controlling their premiums.”
“’Pay as your Drive’™ insurance is smart because it gives customers control over the cost of their car insurance”, said Mark Connelly, general manager, Progressive. “We are thrilled that Norwich Union recognises that innovation can – and should – benefit customers.”
The black box device measures vehicle usage and sends data directly to Norwich Union using similar technology to that used by mobile phones. Customers could be billed monthly and the technology will 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 in Europe to pilot ‘Pay As You Drive’™ insurance using this technology. Following an extensive consultation period 5,000 motorists will be recruited later this year to test customer benefits of ‘Pay As You Drive’™ insurance and demand for associated services.
Customers can register their interest in Norwich Union ‘Pay As You Drive’™ insurance by e-mailing their contact details to payasyoudrive@norwich-union.co.uk
-ends-
Press contact:
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 general insurance it is more than 1.5 times the size of its nearest competitor, and has a 19 per cent share of the market.
- It has a focus on insurance for individuals and small businesses. It insures :
ˇ one in five households
ˇ one in five motor vehicles
ˇ more than 700,000 businesses - Norwich Union products are available through a variety of distribution channels including brokers, corporate partners such as banks and building societies, and Norwich Union Direct.
- Norwich Union’s news releases are available on this internet site
- A photograph is available via ISDN from the press office.
- A selection of other images is available from the CGNU Newscast 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 Number 99122 Registered Office 8 Surrey Street Norwich NR1 3NG
- Member of the CGNU Group of companies and of the General Insurance Standards Council
For all life & pensions media enquiries 08703 66 68 73 For all 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. In business since 1937, the company provides all drivers in 48 US states and the District of Columbia with competitive rates and 24 hour , in-person and online services.