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By Ogus (anonymous) | Posted May 02, 2013 at 11:56:44
What the writer does not know is that Aviva lost their shirt during their PAYD experiment. They knew within 18 months that they`d made a mistake in how they deployed the technology and marketed it. This concept is a great one but for it to work, you cannot just reward drivers with low mileage etc.., it must be balanced with higher premiums for those who drive a lot.
The problem comes in that those to who would pay more stay away. So an insurer would only end up lowering their overall revenue without changing the amount of risk they insure.
Even in the USA, Progressive Insurance, the world leader in using technology for insurance purposes, has struggled to make this concept work.
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