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Tom Kavanaugh, PwC Insurance Practice director, on usage-based insurance and how it prices customers.
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For those headlines.
So yeah.
Like driving with your insurance agent in the car that would not work for me and new technology being used by providers is essentially doing just that Tom Cavanaugh.
A price Waterhouse Coopers insurance practice director is here.
With more on how this works Tom.
I don't know I don't like the -- of this tell me how it works.
So essential we're seeing with usage base insurance is.
The use of actual driving -- as the means to assess risk and price customers so.
I -- data and terms that we were just talking about this are -- tracking how many miles you drive or.
You know like in my case how much your gas and braking suddenly are you know writing the -- is the guy credit view isn't going through the light properly.
In what exactly is a recording.
So yeah it depends on different businesses -- tracking different things so to your point it could be the number of miles that you drive any given period.
It could be the time of day you drive where you drive.
There there really -- -- the standard did different businesses are evaluating different things.
It's kind of an invasion of privacy that's -- -- stick with -- I mean our our customers really gonna wanna sign up for this if you have somebody essentially.
You know tracking everything that you do all the time.
Yeah -- to me you know customers want three things you know customers want to know they're getting good value.
They wanna know that they're getting a fair price and they want choice and in the technologies in place today -- allow for all -- So.
What does that mean -- Adrian yeah divers that -- -- basically you're saying make me.
You might offer people a discount if they're willing to have this in the car and you know they might do it out if there are better driver than I am they might think that they could benefit.
From having this in their cars they would do in order get a cheaper more accurate rate not pay for the people like me.
Correct so there's incentives in place com.
That allow for exactly that you can achieve a greater discount based on.
All of those factors that we have discussed earlier so really what it does is it puts into the hands of the consumer more control.
Around how they're priced what the cost of putting this in in in -- partly with cars start coming with this standard insider is that like a box that.
You would pay to have -- your car the insurance company might with your policy.
Well -- there's a couple of different ways in which you can get your car so the first is many of the cars that are rolling off the line today out of this technology embedded within them.
You can also plug in a device if you have an older car or it -- also resigned in the Smartphone in the tardy in your pocket.
Yeah I'm teasing -- joking a lot about this obviously but it which it might get people to actually be better drivers which would be -- for all of us.
The other you know concern I had thing about this was what if you get into an accident and that down the -- you know the other side wants to sort of subpoena the information.
From your date -- to sort of say not even just in that accident that this person has a history.
You know sort of driving.
It gas and -- or speeding or this or that yeah how is that possible concern that the red.
No no question that it is -- and -- want it's one that you know businesses haven't you really tackled yet there there isn't.
From a regulatory standpoint any sort of ruling that would determine what sort of data would or wouldn't.
-- we absolutely could be had in in that direction but as of today we're we're not there yet.
Right tomcat not really -- topic thanks coming -- we appreciate it.
And thanks for having me and maybe just another with as insurance companies to get more dollars media are all right -- be forced the -- more responsible driver in less than.
