InsurTalk Podcast Episode Six: Pay-as-You-Go Insurance
There is beauty in simplicity. Don’t get me wrong; pay-as-you-go isn’t simple for the insurer, but it is for the insurance shopper. And right now, it is a game changer.
This is evidenced by CAA Insurance Company and its development of MyPace, Canada's first and only pay-as-you-drive insurance offering. We at Guidewire recognized CAA Insurance’s project last year with a 2019 Innovation Award. However, in the latest episode of InsurTalk, I was able to talk with Matthew Turack, President of CAA Insurance, to really understand what went into creating this offering and why it’s successful.
When I start talking with leaders such as Matt about innovations, some of the first things I want to know is “Why?” and “Is anyone else doing this?” Matt’s answer seemed somewhat simple on the surface — The other telematics offerings in Canada focus on a discount based on driving behaviors: speed, time of the day, acceleration, hard braking. CAA MyPace uses the same technology, but not for rating. CAA MyPace is simple — how much you drive.
Again, anyone in insurance knows this isn’t as simple as it sounds, but it’s worth the work. Matt details the work, how it’s distributed, some of the benefits, including satisfied customers who are staying at home more right now due to COVID-19, and surprises, including demand from an unexpected segment of the market.
Be sure to listen to the episode:
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And, you can read more about CAA Insurance’s MyPace here.
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