Read Now »The fact that Kenyans only buy and regularly use insurance products when the law insists on it (motor vehicle insurance) or when their employment perks include it (medical insurance), has birthed one of the lowest insurance penetration rates in Africa at under three per cent. Combining both the Internet of Things (IoT) and Big Data as its key innovation levers, telematics-based motor insurance is already changing the way motor insurance is priced and consumed in the world. A telematics device is fitted into the car the moment the motor insurance policy becomes active. But the advantages of telematics-based motor insurance do not just start and end with its ability to use data to reward good driving practice. “We are thankful that the telematics device came through for us in the most unexpected of ways.”As telematics-based motor vehicle insurance products get a toehold in the market, it seems that previous value-based pricing models are being fundamentally challenged.

Source: Standard Digital April 18, 2020 21:00 UTC