PSA Muscles into UBI Market
French automaker PSA Group is planning to muscle its way into the lucrative auto insurance market employing its own UBI solution.
The move, often predicted by insurance experts talking to TU-Automotive, could be the herald of a disruptive shift in the market if other automakers take up the risk-carrying cudgels. Similar to existing third-party UBI offerings, the PSA Assurance contract option rewards policyholders for responsible driving behavior and allows them to benefit from a discount on the standard insurance premium, effective on sign up.
The user’s individual driving score is calculated automatically and could result in discounts of up to 25% from the second year. Policyholders are informed of their score on a monthly basis and provided with advice aimed at improving their driving behavior and maximizing their discount.
Driving data is collected remotely through PSA’s on-board device that is also used for the mandated eCall functions of emergency and local assistance help calls. This device is currently fitted to more than five million of the automaker’s vehicles.
The automaker stresses that personal data integrity, safety and security are protected in compliance with the General Data Protection Regulation and a corresponding disclosure is reported to the CNIL, France’s data protection authority.
So far, the insurance policies are only offered to French customers of new and used eligible cars from the Peugeot, Citroën and DS Automobiles brands. To date 86,000 customers have already signed up for a policy, with 12,000 of them choosing the connected insurance option.
— Paul Myles is a seasoned automotive journalist based in London. Follow him on Twitter @Paulmyles_
