At Zuno General Insurance, the ‘Pay-How-You-Drive’ model is truly an example of personalised insurance. This data-driven approach allows them to calculate usage-based premiums, ensuring that each policyholder receives a tailored pricing structure reflective of their unique driving style, shared Shanai Ghosh, MD & CEO of Zuno General Insurance in an exclusive interaction with Srajan Agarwal of Elets News Network (ENN).
Could you share insights into the genesis of the ‘Pay-How-You-Drive’ model and how it aligns with the evolving landscape of insurance?
The genesis of this innovative approach is rooted in our purpose of reimagining insurance to make it easy, friendly, and transparent. At Zuno GI, the focus is on building trust through digital solutions that are intuitive and responsive, using consumer insights and data analytics to drive innovation and experience. Zuno GI has been the frontrunner in the usage-based motor insurance category. In 2020, under the sandboX initiative of IRDAI, Zuno launched India’s first app-based switch on/switch off motor insurance, Zuno Switch Motor Insurance, where one pays only for the days the car is driven. #DontDriveDontPay
In 2022, a new and improved Switch 2.0 was launched to enhance the customer experience even further. Zuno Switch 2.0, incorporates telematics technology to detect when customers are driving and adjusts premiums based on driving behaviour and usage. Drive Less, Pay Less. Drive Better, Pay Less and enjoy more savings. #SwitchToSave.
These products were launched under the regulatory sandboX, and last year the
regulator allowed us to launch Usage based add-on for Motor Insurance products. We will be adding many products under our Usage Based Insurance platform ‘Switch’. We have already launched PAYD (Pay As You Drive) add on which allows customers who drive less, to get a lower premium. And in Nov’22 ,we launched a ‘first-of-a-kind’ innovative concept to measure driving behaviour using mobile telematics. Now anyone can download our app and get their ‘ZunoDrivingQuotient’ which will tell them how well they drive. With this endeavour , we want to take the conversation around road safety to the next level by first creating an objective score to measure driving behaviour and as a next step, incentivising customers to get a good score.
This initiative represents a game-changer in the insurance industry, allowing users to assess their driving skills and obtain an objective score. In simple terms, the better one drives, the higher the score, leading to lower car insurance costs.
Our initiative not only incentivises responsible driving but also contributes to enhancing road safety by encouraging good driving behavior.We don’t just want to protect our customers when accidents happen, we want to prevent them from happening. We want the ZDQ to nudge people to improve their driving and want a good ZDQ to become synonymous with good and safe driving.
Building ZDQ into an insurance product, we will be launching PHYD (Pay How You Drive) add-on shortly which will allow customers to build rewards to save their insurance premium, every time they drive. Our ‘Pay-How-You-Drive’ model is conceived with the aim of revolutionising conventional insurance practices to align with the changing technological landscape and personalised risk assessment. Recognising the progress in telematics and data analytics, we seized the opportunity to introduce a more transparent and equitable pricing structure based on actual driving behavior.
The promise of lower premiums based on driving behaviour is intriguing. Can you elaborate on how Zuno General Insurance determines premiums, ensuring a fair reflection of individual driving habits, and how this benefits policyholders financially?
By harnessing the power of telematics and data analytics, we’ve elevated the insurance experience for our policyholders. Our telematics based mobile app helps us evaluate real-time driving data, enabling us to assess individual driving behaviour and use that to predict probability of an accident.
Our recently introduced Zuno Driving Quotient score sets the stage for a new era in insurance. This objective measure of driving skills is not merely a metric; it’s a game-changer. Premiums are linked to the quality of driving, providing a tangible incentive for policyholders to prioritise safe and responsible practices on the road. The financial benefits are clear – as driving scores improve, so do the savings on premiums. At Zuno, we’re not just redefining premiums; we’re empowering our policyholders to control their insurance costs while championing a culture of road safety. This dynamic and personalised approach reflects our unwavering commitment to making insurance easy, friendly, and transparent, ensuring that Zuno General Insurance remains at the forefront of innovation in the industry.
For first-time car buyers, affordability is often a significant concern. How does Zuno General Insurance see ‘Pay- How-You-Drive’ as a budget-friendly solution, and what considerations are taken into account to cater to this specific demographic?
We recognise that affordability is a paramount concern for first-time car buyers. For them, the ‘Pay-How-You-Drive’ model provides a unique advantage. The flexibility inherent in this approach means that policyholders are not burdened with fiXed, one-size-fits-all premiums. Instead, premiums are directly tied to their driving habits. This not only makes car insurance more accessible but also encourages responsible driving, contributing to overall road safety.
Zuno is here to reimagine Insurance. To create relatability around Insurance products so as to excite millennials and GenZ, we have simplified the benefits offered by all our products. Tech innovations power simplicity. Through innovative solutions like SWITCH, our on-demand comprehensive motor insurance product, we aim to provide a hassle- free and cost-effective insurance experience for first-time car owners.
The ‘Pay-How-You-Drive’ model suggests a personalised approach to insurance. How does Zuno General Insurance adapt its offerings to accommodate various driving styles and behaviours, ensuring a tailored experience for each policyholder?
At Zuno General Insurance, our ‘Pay-How- You-Drive’ model is truly an example of personalised insurance. This data-driven approach allows us to calculate usage-based premiums, ensuring that each policyholder receives a tailored pricing structure reflective of their unique driving style. The introduction of the Zuno Driving Quotient score provides an objective measure, giving policyholders a clear assessment of their skills and creating a direct link between safer driving and more cost-effective insurance.
We understand that driving styles vary, and our model is designed to cater to this diversity. The ‘Pay-How-You-Drive’ approach goes beyond a one-size-fits-all, offering policyholders a nuanced and tailored insurance experience. With a focus on transparency and responsiveness to individual behaviors, we are dedicated to delivering insurance solutions that not only accommodate various driving styles but also provide financial incentives for responsible habits on the road.
Looking ahead, how does Zuno General Insurance envision the future of ‘Pay-How-You-Drive’ insurance? Are there plans for further innovations or expansions to reach a broader audience and provide more comprehensive coverage?
The customer of today wants intuitive and personalised products and experiences which they can access on-demand. Mobile telematics driven Usage Based Insurance is a great fit. Going ahead, we aim to expand our reach to a broader audience, ensuring that the benefits of ‘Pay-How-You-Drive’ insurance are accessible to more people. This could involve introducing new features, collaborating with automotive manufacturers, or exploring partnerships that bring our innovative insurance solutions to a wider demographic, commercial fleets etc. Our focus remains on making insurance easy, friendly, and transparent for everyone, and we are committed to staying at the forefront of advancements to provide comprehensive coverage that meets the evolving needs of our customers.
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