Until today it was always “what if”. What if a tech giant decided to get involved in insurance? What if a Google or Facebook decided to launch its own insurance products? Now, the “what if” questions have become that little bit more real.
That’s because one of the tech giants has decided to reach into the vehicle insurance market for the first time – as mobile network operator O2 becomes the first of its kind in the UK to offer a car insurance product.
The company has launched O2 Drive, a service that relies on the internet of things to help encourage responsible driving.
A report at Computer Weekly has revealed that the policy, built with the assistance of Junction, the brand partnership arm of BGL Group, comes with an optional telematics proposition that monitors driver behaviour and is known as Box on Board.
Drivers who select the product get a discount on their premium and get an accompanying app that gives them driver scores and tips to improve.
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In addition, a discount will also be provided to those who are part of the O2 network, with the company telling the publication that younger drivers are very much the focus of its proposition.
“Despite the rapid evolution of technology, the way we insure and service our cars has remained largely unchanged, with customers telling us that buying insurance is impersonal and confusing. We are on a mission to make customers’ lives easier through mobile, which is why we created O2 Drive,” O2 director of digital David Plumb told Computer Weekly.
It’s a mission that is sure to raise eyebrows among existing insurers and brokers who fear that tech super powers could be a long term threat to their business volumes.
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