connected usage-based insurance, a solution that meets customers’ expectations

“Pay as you drive” and “pay how you drive” insurance solutions make it possible to modulate some conditions of the insurance policy – for example the amount of premium or the excess - according to usage and driving behaviour and thus to reward good drivers, based on native data collected by the vehicle. Distance and duration of use of the vehicle, frequency of use, type of financing, number of drivers, type of destinations, connected insurance offers can take into account very different variables. 

This type of insurance policies show a certain potential for Renault Group, as most of the new Renault models are to be natively connected from 2023. In addition to their commercial potential, these offers will also increase customer satisfaction and help to encourage responsible behaviour on the road. 

In November 2022, Mobilize Financial Services created Mobilize Insurance to develop its car insurance offer and to respond to new mobility habits, and in particular to develop innovative offers that move with the customer, beyond the vehicle, based on the connectivity of the Group's vehicles.

in Spain, a new connected insurance that rewards driving behaviour

For the launch of Austral Hybrid in November 2022, our teams in Spain have designed with MAPFRE our first connected insurance solution combining "pay as you drive" and "pay how you drive" insurance via a mobile app.  

With the CaRewards-MFS mobile app, the customer can benefit from additional advantages in his insurance contract. These benefits are calculated on the basis of the use and driving of the vehicle, monitored by the data collected by the vehicle (sudden stop, speeding, speed, anticipated movements).  

In concrete terms, the insurance premium is adapted to the use and good driving of the motorist; it is no longer a fixed annual premium.

what are the benefits for the customer?

  1. A €50 bonus as soon as you register for the service via the app;  

  1. Discount on the insurance premium for each day not used (€1 per day not used with a maximum of €50 on the renewal premium);  

  1. Up to 15% premium discount on contract renewal depending on driving score (i.e. 2 months free insurance);  

  1. Rewards throughout the insurance contract via a gamification programme (challenges offered to drivers by Mapfre) 

Using this service is very simple: the customer can activate it via the CaRewards-MFS app as soon as he/she wants, included in the insurance contract. They have the choice to activate it or not. He does not have to subscribe or install anything, as the service works thanks to onboard connectivity of the vehicle. With this service, he can optimise his insurance premium.

in Italy, a discount on the insurance excess for virtuous driving

Other usage-based insurance offers exist in Europe. In Italy, for example, since the beginning of 2023, we have been offering a 'theft and fire' insurance product with our partner AXA, in which the driving score makes it possible to reduce the deductible paid by the driver in the event of a claim. This mechanism is intended to encourage the customer to drive well.

South Korea: emergency call function as a basis for future development of connected services

Mobilize Financial Services Korea, Renault Korea Motors and Hyundai Fire & Marine launched an attractive insurance offer for all vehicles with the automated emergency assistance call function. 

Hyundai Fire & Marine offers a 6.9% discount on car insurance for all conected XM3 (Arkana) and SM6 (Talisman) customers. The discount is applied to the emergency assistance call function which uses connectivity technology. 

Emergency assistance calls can be made or triggered automatically to provide emergency services such as towing and assistance. The insurer offers a further reduction of -5.8% maximum depending on the ADAS equipment of the vehicles and the activation of the sharing of these data (ADAS = Advances Driver Assistance Systems).  

While not based on vehicle use, this new service lays the foundation for the future development of connected insurance, providing more safety for the customer and enabling us to train insurance scoring models.