Aimed at coach operators with fleets of more than 10 vehicles, customers will be required to share their historical telematics data relating to vehicle usage and mileage, on which an initial premium will be calculated.
Customers’ vehicles will be monitored by an onboard telematics device, which tracks movement and/or location through a GPS system. QBE said that the system will provide “pinpoint accuracy” on the vehicles’ mileage and use, and based on the data the insurer will adjust premiums accordingly.
QBE has also stated that, in the future, flexible telematics-based pricing could consider other factors such as operating schedules and routes taken – particularly aspects such as traffic density, exposure to accident hot spots, and weather – and even individual driver behaviour.
The insurer has tapped Gallagher as its exclusive broker for the new product.
“This is a first step in the viability of a flexible, telematics-based pricing model for a part of the transport sector that has been hard hit by the pandemic,” said QBE motor portfolio manager for London and Southeast Daniel King.
King added that while restrictions have been lifted, it is “unlikely” that coach operators in the UK will revert to pre-pandemic mileage levels for some period of time. This new offering is QBE’s way of “continuing to support the sector,” the portfolio manager said, noting that QBE recognises that data from sources like telematics “will drive the way we price business and understand our exposure for years to come.”
“Like many industries, the passenger transport sector has endured a challenging period since the start of the pandemic. Over the last two years, we’ve worked closely with clients to support them through these unprecedented times – from helping them to understand, identify and manage any changes to their risk exposure as a result of rapidly changing restrictions, and arranging insurance solutions accordingly,” said Gallagher transportation practice leader Phil White.
“Our partnership with QBE marks a milestone in our support for clients in the sector - offering both flexibility and transparency when it comes to their insurance,” White commented. “This new product gives us the ability to collect real-time data to create accurate risk profiles for our coach customers.”
