Challenger motor insurer Kudo Insurance, which was founded by former esure chief executive Peter Graham, has launched its app-based product for UK motorists.
Initially available on the iOS App Store, the app will soon have an Android version, said Kudo, whose technology assesses a policyholder’s driving skill and creates a personalised driver score. The latter is used in calculating insurance premiums, with the ‘best’ motorists receiving the biggest price reductions.
“Watching decades of customers being constantly disadvantaged due to pricing based on generalised assumptions, and unjustified administration fees, were the major triggers for Kudo to disrupt the market and create a fairer system,” said Graham, who was a founder member of the executive team at esure – said to be the first web-based insurer in the UK.
“Tailored premium discounts based on the driver’s actual performance are the future, shifting the emphasis away from factors outside of a driver’s control such as their age or location. Kudo puts an end to the current business model in which safe drivers subsidise the premiums of poorer drivers.”
The goal, according to Graham, is to reward safe driving.
“We firmly believe that drivers should be incentivised to drive safely and fuel efficiently on every trip,” Kudo’s founder went on to state. “Kudo Koins will be a fun way to make this happen. Looking ahead, we hope to be able to incentivise our policyholders to drive less: Kudo Koins will be offered to those who give up the car for a regular journey and walk, cycle, or take public transport instead.”
Meanwhile, coinciding with Kudo’s app rollout is the company’s commencement of its Series A funding round, proceeds of which will mainly go towards driving growth and the further creation of data science intellectual property. Part of the funds will also be spent on underwriting capacity.
