Women drivers trend in terms of cashback rewards
The detail is in the data and insurer MiWay's data shows that women also drives less than men.
Developments in technology are impacting the vehicle insurance sector significantly. An industry that has seen little change in its way of operating for many decades, the sector is now able to customise its insurance offering on a more individual, personal level than ever before.
Through data collected by the technology used by its customers, insurer MiWay Blink has identified some interesting patterns regarding South African drivers.
“A significant benefit that technology allows today is for an insurer to measure how much driving a particular customer does in a certain period, and then, where applicable, to return some of the monthly insurance premium to that customer,” explains recently appointed head of MiWay Blink, Keletso Mpisane. “This is known as a cashback.”
“Our data reveals that women have received more in cashbacks than their male counterparts,” Mpisane said. “In fact, the data we collect reflects that women who qualify for the cashback option drive 15% less than their male counterparts. In terms of actual refunds, this means that women drivers are receiving an average of 22% of their premiums back in cashbacks, and many have even been rewarded to the tune of 50% of their premiums.”
The fact that this type of technology allows for the monitoring of the amount of driving being done by an individual should make it a more appealing option among women for insuring a vehicle, rather than the traditional approach which does not provide for a way to look at what a particular person did in terms of their driving during a month.
Traditionally, insurance policies were based on a category of drivers, rather than looking at a driver at individual level. Many insurers still apply that approach, since they have not introduced the technology that allows for measuring the driver’s individual behaviour.
Mpisane said, “Women drive less at night than men do. Our figures show that women are on the roads 18% less at night than men. This is important for the insurance industry because there is a higher risk of accidents occurring at night than during the day.”
The MiWay Blink base premium is calculated on a monthly driving distance of 2 500km and, if an insured person drives less than that amount, they will qualify for a cashback, which is a refund of part of the premium paid for that month. For someone who recorded less than 100km of driving during the month, a refund of 50% of the premium is made.
“Through the technology, we are able to record how much a customer drives during the month. If a particular person is not out on the roads much, the risk of an accident is lower, and that is why we at MiWay Blink are able to pay back a part of the premium,” Mpisane explains.
Data collected through the information provided by the new technologies is clearly a positive for the individual customer but it can also serve society well through the trends and behaviours it reveals.
Source: Irvine Partners INC
