Working closely with Telefónica’s innovation teams, we designed a new type of smart driving insurance that tracks performance, enhances driver skills, and rewards safe driving practices.
In 2012, the car insurance industry was grappling with several significant challenges. Legal reforms prevented companies from charging premiums based on age or gender, while fraudulent claims were on the rise, with customers falsely reporting incidents that never occurred. At the same time, younger drivers were unfairly penalized with high premiums simply because of their age, without considering the actual safety of their driving behavior.
Pay-how-you-drive insurance works by installing a small, secure monitoring device on the underside of your car. This device records key data such as your speed, acceleration, deceleration, location, and time of day. The information is then wirelessly transmitted to the insurance company, where it’s analyzed to assess your driving behavior. Based on this rating, your insurance premium is adjusted accordingly.
By passing on some of the savings to customers through lower premiums, the idea of a monitoring device becomes more acceptable and customer adoption more successful.
At the heart of the digital customer experience was an app, available on both desktop and mobile, that provided drivers with insights into their driving habits. The app offered personalized suggestions for improving driving behavior, such as fuel-saving tips, ultimately helping drivers lower their insurance premiums while becoming safer on the road.
Product Strategy
Eduardo de Felipe
Keith Saft
Design Direction
Eduardo de Felipe
David Boleas
Design Team
Frederik Delmotte
Project Management
Marta Bacardit