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Pay As You Drive - PAYD - Telemetry Solution
Norwich Union Insurance, the largest personal lines insurer felt almost honour-bound to lead the way in 2002, in revolutionising motor insurance by piloting a 'Pay As You Drive' motoring solution insurance system.
Rightly inferring from the marketplace that widespread use of in-car telematic devices is inevitable, Norwich Union set about creating a pilot.
Norwich Union envisaged an innovative venture which saw data collected from a telematic device in a customer’s car and an insurance premium based on when, where and how often the car is used.
Research commissioned by Norwich Union has shown that motorists strongly support the introduction of ‘Pay As You Drive’ insurance. Nine out of ten people said that they would prefer their motor insurance to reflect the usage of their car and the type of journeys they make. PAYD represents a shift from average fixed costs to variable cost in the insurance business model.
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"Smart 421 are playing a significant role in the integration and implementation of the extended pilot of the PAYD project. Smart's thorough consultation and delivery services are helping to ensure that we move smoothly forward toward a fully operational retail system."
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