Connected insurance technology provider The Floow, an Otonomo Technologies Ltd. (Nasdaq: OTMO) company, has announced it has partnered with leading property and casualty insurer Definity (TSX: DFY) and Munich Re, a leading global provider of reinsurance solutions, to bring a new, innovative, usage-based auto insurance product to Canada.
Definity’s new Sonnet Shift is the first ever UBI product in Canada to offer quarterly price adjustments based on recent driving scores. Powered by The Floow advanced telematics and Munich Re, Sonnet Shift uses individual driving behaviours and preferences as the main factor for pricing, including time of day, fatigue, smooth driving, speed, mobile distraction, and road risk.
The flexibility of FloowKit, The Floow’s software development kit (SDK), enabled Definity to build its highly customized insurance solution on top of The Floow’s foundation, resulting in a convenient, simple way for auto insurance customers to gain more control over their premiums.
The Sonnet Shift offering is based on driving behaviour scores, which have been consistently proven to predict claims, and therefore enable personalized pricing. The mobile app uses telematics data captured and scored by The Floow to generate three user-based rate pillars:
● Behavioural Score – Customers benefit from a fair price based on their actual driving behaviour.
● Mileage Contribution – Mileage driven by each driver on the policy is analyzed and weighted quarterly to derive an updated premium based on usage.
● Mileage Discount – At policy renewal, customers are eligible for annual mileage discounts if actual kilometers driven fall within predetermined levels.
“Usage-based rates are the future of auto insurance,” said Aldo Monteforte, CEO of The Floow. “We are delighted to support top insurance companies like Definity, powering their connected insurance strategies and transforming the way auto insurance is written and managed. Definity is leading the way and we are delighted to partner with them to bring their innovative solution to auto insurance customers in Canada.”
The Floow and Munich Re Global Consulting were selected by Definity following a competitive RFP process.
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