CAA Insurance Company, a Canadian auto insurer, is getting ready to launch a new telematics-powered usage-based insurance program, CAA MyPace.
The company selected technology from Octo Telematics for the initiative, which is a pay-as-you-go model. Beginning in July, policyholders can buy insurance in 1,000 kilometer increments, rather than by a period of time like a month. The company says people who drive fewer than 9,000 kilometers per year stand to benefit from the program.
“We wanted to recognize the varied and unique ways that our policyholders drive today and quickly roll out new options that allow them to afford the best type of insurance for their individual needs,” said Robin Joshua, vice president, CAA Insurance. “Working with Octo Telematics was the obvious choice, given their storied history in, and global development of, insurance telematics programs and their ability to direct many different facets of the program. We were confident in their ability to quickly get us up and running, and excited about their breadth of capabilities.”
MyPace uses Octo Surround, the company's offering that includes an OBD-II device and corresponding mobile app for value-added services like driver feedback and vehicle health information.
“The pay-as-you-go model allows insurers like CAA to more accurately price premiums based on kilometers, and create a new paradigm with policyholders – emphasizing and recognizing each as an individual and building real-time policies that fit around their lifestyle and need, as opposed to traditional insurance that views and prices policyholders in bulk," Nino Tarantino, CEO of Octo North America, adds. "It also puts the policyholder in control of their premium costs, and incentivizes them to reduce kilometers driven and adopt safer driving habits, thus reducing accidents, traffic congestion and vehicle emissions as well – a win-win for everyone.”
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