Road site visitors accidents are a worldwide challenge, and the dimensions of the issue is immense. According to the World Health Organization’s Global Status Report on Road Safety, 1.2 million folks die on the roads yearly, and 50 million are injured. Approximately 90 p.c of all accidents might be attributed to low-income and middle-income international locations.
However, within the United States, which had greater than 220 million registered drivers in 2016 and 2.4 million traffic-related injuries, the vast majority of drivers aren’t concerned in incidents or accidents. A minority of drivers will increase prices and premiums for individuals who take care.
Today, Kasko2Go, a decentralized automobile insurance coverage app, has introduced the launch of its protected driver group. The concept is an easy one: Reward protected drivers with lowered premiums, in order that the proper conduct is rewarded. That, in flip, incentivizes good driving within the first place. And then again that group up with know-how that helps make the answer fraud-free.
That’s a major drawback to unravel — not simply within the U.S. however worldwide. And protected driving makes an actual distinction. In the U.S., 43 p.c of first-year drivers and 37 p.c of second-year drivers are concerned in automobile crashes. A four-year examine confirmed that superior driver coaching had lowered that price to 4.6 percent of first-year drivers.
Kasko2Go’s strategy isn’t based mostly solely on constructing a group of protected drivers — it screens drivers and makes use of the collected knowledge to find out how good a driver they’re.
“It is based on a massive amount of data, which is accumulated from every driver,” Genadi Man, CEO of Kasko2Go, instructed me. “That includes telematics, navigation, and big data technologies (that) enable precise profiling of insured clients based on driving quality, style, weather, road conditions, vehicle conditions, location, and the driver’s social conformity.”
But Kasko2Go isn’t simply rewarding good drivers with decrease premiums. It can be serving to to maintain prices low by attacking the opposite main reason for elevated premiums — fraud.
A 2017 secret investigation the insurance coverage firm Aviva performed in Ontario, Canada confirmed that 9 out of 10 physique store claims concerned have been fraudulent. Repair prices have been hiked, further harm was attributable to the physique retailers to say higher-than-needed reimbursements, and second-hand elements have been used however billed as new.
Last month, Kasko2Go introduced it’s utilizing Israeli military-grade technology to assist eradicate fraud, from the purpose of the incident all over to the restore course of. That helps all its customers hold prices low. But in the present day’s announcement takes degree additional, reflecting current requires a change in the way in which automobile insurance coverage is delivered to shoppers.
By combining driver security measurement and fraud prevention, and by recording every part in a decentralized, distributed ledger know-how, Kasko2Go is hoping to disrupt an business that has historically been unable, or unwilling, to reveal the way it calculates premiums.
“Decentralization of insurance will be significant in the future,” Man mentioned. “Traditionally considered competitors will have no reason not to use our technology for their customers. Our solution will be available for every insurance company, using decentralization and distributed ledger technology.”
By scoring particular person drivers, reasonably than pricing insurance coverage based mostly on broad demographics, the corporate hopes to keep away from any protected driver having to pay further as a result of a reckless one. This is the place the apps telematics system comes into play. By studying the driving habits of every consumer, the corporate claims it will probably guarantee honest pricing that’s customized.
And a group of protected drivers ought to encourage different customers to vary their conduct to attain comparable value advantages. Kasko2Go is, successfully, gamifying the driving expertise by way of an incentive scheme. From the insurer’s perspective, the advantages embrace loss discount, portfolio improve, and extra correct underwriting.
“Kasko2go insurance is more profitable because the scoring system allows us to get to know our customer and their driving culture,” Man mentioned. “Every driver is interested in safe driving, so Kasko2go creates a community of safe drivers. Safety on the roads is the best profit.”
Kasko2Go’s protected driving group is out there in-app from in the present day and combines with its present anti-fraud know-how, distributed ledger, and telematics. The app is out there for each iOS and Android.