Heritage Insurance Kenya Introduces First Telematics Motor Insurance in Kenya

Posted on :Wednesday , 7th August 2019

Heritage Insurance Kenya has launched the country’s first telematics motor insurance, labeled Auto Correct motor insurance. According to the Insurance Company, the service makes use of telematics capabilities together with data and analytics to promote safety and improve customer engagement.


The business is powered by telematics technology – a method of capturing and processing driving data. The device collects and transmits driving behaviour relating to acceleration, braking and cornering, all of which are key factors in figuring out how well or poorly a vehicle is driven. A comprehensive formula makes use of the driving data collected to calculate an appropriate driving score.
 
With the anticipated reduction in the overall claims to the company, the customer is expected to gain through reduced cost of insurance achieved through premium cash back to the customer at the end of each policy year, based on the customers’ overall driving scores.
 
The company’s Managing Director Godfrey Kioi said, the new service targets to enable service delivery and significantly speed up claims payment.
 
“Heritage’s Auto Correct promises a blend of intelligent black-box technology, driver feedback and attractive rewards aimed at improving driver behavior, potentially reducing both accident frequency and the cost of insurance,” said Kioi.
According to the company, all private motor vehicle owners are worthy for Auto Correct and may potentially get up to 15% cash back on annual paid premiums at the end of their policy period, if they drive safely.
 
They will also acquire loyalty points, which can be redeemed from time to time at selected service providers.
Auto Correct comes with a smart phone app that provides, among other things driving feedback, weekly, monthly and annual scores as well as the accumulation and management of loyalty points.  The app also provides information on where and how to redeem the loyalty points.
 
Consumer opinion advised that such innovation could help repair the existing mistrust and resultant high customer turnover in the insurance industry. This is due to the low confidence in insurance claims processes, which has affected long-term value optimization. Overall, the industry must accept such innovation to redirect focus back to the end-customer experience.
 
The country’s insurance infiltration rate, the contribution of insurance premiums to GDP, has been relatively low compared to the world’s average of 6.1% and 3% for Africa.
 
The internet and mobile phone revolution are set to widen access to a diverse range of insurance products. In 2018, the number of active mobile subscriptions and internet users stood at 49.5 million and 43 million respectively. This presents a connected opportunity, laud to have a bottom-line impact on ease of enrolling and paying for insurance products.
 
With Auto Correct, Kenya, through Heritage Insurance Kenya, becomes the first country in East Africa and second in Africa, after South Africa, to introduce a telematics motor insurance solution to the market, which also comes with a premium financing option.
 

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