Insurance provider QBE is working exclusively with broker Gallagher to provide pay-as-you-go, mileage-based motor fleet insurance for the coach industry.
The new product launched on 1 February. It is aimed at coach operators with fleets of more than 10 vehicles and QBE and Gallagher say it will allow those businesses to “ensure their insurance premiums are accurately tailored to vehicle usage patterns.”
Customers that wish to make use of the offer will be required to share historic telematics data relating to vehicle utilisation and mileage. An initial premium will be calculated using that information. An in-vehicle telematics device will then monitor the movement and location of coaches via GPS, providing “pinpoint accuracy” about mileage and use.
Adjusted premiums will be calculated based on that actual usage. Going forward, flexible telematics-based pricing could consider operating schedules and routes, looking at traffic density, exposure to accident blackspots and weather, and, eventually, driver behaviour.
Says QBE Motor Portfolio Manager for London and South East Daniel King: “This is a first step in the viability of a flexible, telematics-based pricing model for a part of the transport sector that has been hit hard by the pandemic. It is our way of continuing to support the sector. We also recognise that data from sources such as telematics will drive the way we price business and understand our exposure for years to come.
“QBE has been underwriting passenger transport vehicles for over 50 years and there is definitely scope for alternative pricing models. Data will play a central role in supplementing conventional pricing approaches with more flexible methods, but we need to find the right balance to ensure new solutions are straightforward and actually respond to our customers’ needs.”
Adds Gallagher Transportation Practice Leader Phil White: “Like many industries, the passenger transport sector has endured a challenging period since the start of the pandemic. Over the last two years we have worked closely with clients to support them through these unprecedented times, from helping them to understand, identify and manage any changes to their risk exposure as a result of rapidly changing restrictions, and arranging insurance solutions accordingly.
“Our partnership with QBE marks a milestone in our support for clients in the sector, offering both flexibility and transparency when it comes to insurance. This new product gives us the ability to collect real-time data to create accurate risk profiles for our coach customers.”
