Published: October 23, 2014 | UK
Zenith has teamed up with telematics firm Wunelli, to begin offering a telematics package to brokers around the country, with a new policy called Brightbox. Brightbox is mileage-based and offers cover based on the number of miles the customer anticipates to drive. The policy targets customers with low annual mileage or young, inexperienced drivers.
The policy is specifically designed to target those with very low mileage each year, as well as young drivers who might struggle to pay for or be accepted for a standard policy. Before being rolled out nationwide, the new system will be trialled with Markerstudy Group’s retail brand The Insurance Factory in the latter quarter of this year.
The Brightbox package is quite similar to some of the US based telematics insurance policies we’ve seen, being essentially “usage based insurance,” or UBI, which boils down to costing as much as the person chooses to drive. The original premium is based around the number of miles the person is expected to drive over a set period. If those miles are reached and exceeded, then the premium cost rises. If they stay under, or drive safely, they could earn more miles for free.
Penny Searles,MD of Wunelli says, “Zenith has really put its weight behind this exciting new telematics proposition and isn’t afraid to challenge the existing concepts to bring brokers something fresh that will allow opportunity for interaction with policyholders during the life of the policy.”
Source: Insurance Age