Telefonica has partnered with insurance company Generali Seguros to provide an insurance service to Spanish motorists that calculates premiums according to driving habits.
The companies say the service, branded “Pago como conduzco”, will be of particular benefit to younger drivers with good driving habits.
Customers stand to save up to 40% compared with a conventional policy, argue the companies.
The technology works by analyzing various factors, including the number of kilometers clocked by a customer each year and whether these were covered by day or at night, in city areas or between cities; whether the driver keeps to speed limits; and whether they accelerate or brake too suddenly.
Journey data is gathered using an M2M device installed in the car before being processed and sent to Generali (Madrid, Spain), which then adjusts the insurance policy accordingly.
Information is kept private and made available only to the insured parties, say Telefonica (Madrid, Spain) and Generali.
When a customer takes out the policy, Generali works out the premium according to usual parameters and adjusts this based on feedback from the customer.
Because customers pay half of the premiums over 11 installments, the amounts can be adjusted monthly.
Customers can also find out how they are progressing through mobile apps and a website, which also provide details of journeys made and driver profiles.
According to Generali, “Pago como conduzco” can be taken out at any of the branches of Generali agents and covers private cars, off-road vehicles, people carriers and car-based commercial vehicles, offering insurance policies for third-party, third party plus windows, comprehensive third party, all risk with excess, or all risk without excess.
With “total premium business” in Spain of more than €2.39 billion ($3.22 billion) in 2011, Generali claims to have more than 1,600 Spanish branches and a broad network of agents and brokers.