Pay-As-You-Go car insurance is being rolled out by a number of pioneering insurance companies. It is design to charge for insurance based on actual vehicle usage considering factors such as time of day and road type. The challenge for insurance companies is reducing the cost of the on-board equipment, back-end systems and operating costs such that PAYG might represent a cost recoverable proposition that increases their market share whilst providing for better understanding or risk and “good-customer” selection.

At present, PAYG relies upon existing telematics devices for the on-board unit. These are typically expensive, and costly to install. Their physical attributes also deter widespread take-up, such visible antennae/wiring, or the requirement for retrofit PAYG enabled satellite navigation systems to an increasing number of vehicles already equipped with integrated navigation systems at time of manufacture. In addition to the cost to provision mobile data services such as GPRS for retrieval of the vehicle usage data.

• Building Capital can bring expert on-board equipment, mobile data and back-end systems knowledge to assist insurance companies better specify, procure and validate solution from a wide range of suppliers.
• We can provide expert advice to deter and reduce the opportunity for insurance fraud presented by tampering with the on-board equipment, including the insertion of malicious software into these often unintentionally “open” consumer devices.
• We can also import our best-practise logistics and service process designs gained from major road user charging deployments to ensure a “right first time” customer experience.