QUEBEC CITY, April 11, 2012 – Today, Industrial Alliance, Insurance and Financial Services Inc. has launched Mobiliz, a societal initiative aimed at improving driving behaviours and combating the speeding plague among drivers aged 16 to 24. Mobiliz is a new revolutionary auto insurance program based on the “Pay-As-You-Drive” concept, whose premium is primarily based on the drivers’ behaviours than on their being part of a specific age group or on their claims history. Youths who adopt responsible driving behaviours can therefore benefit from the lowest rates in the industry.
This new method, a first in Canada, marks a genuine revolution in the area of auto insurance in Québec. Mobiliz’s business model was designed such as to offer youths the lowest premium possible rather than to generate operating profits for Industrial Alliance. “For us, Mobiliz is first and foremost a cause, pointed out Industrial Alliance President and CEO, Mr. Yvon Charest. By this initiative, we wish to actively take part in solving a societal issue and save lives by way of what we do and know best, that is, insurance. If Mobiliz generates operating profits, these will be reinvested in the cause on the basis of a continuous improvement procedure where the program shall adjust to the needs and expectations expressed by the youths themselves”.
According to the President and CEO of operations at Industrial Alliance Operations, Auto and Home Insurance Inc., Mr. Michel Laurin, “Mobiliz will enable youths who drive responsibly, but frustrated with their high premiums simply because they are young, to benefit from the lowest rates in the industry. As for youths who currently have extreme driving habits, Mobiliz will offer them the necessary financial incentives so that they can adopt more responsible driving habits. “
Use of Technology at the Service of Road Safety
Mobiliz relies on telematics technology. This simply means that each vehicle insured with Mobiliz will be granted free installation of a GPS-type module at one of the 220 certified installers across Québec who are members of the Belron (Lebeau, Duro) and Uniban (VitroPlus, Docteur du Pare-Brise) networks. The device, installed under the instrument panel and therefore not noticeable, monitors distance travelled as well as the three driving behaviours, that is, speeding, forced accelerations and hard brakings. The device also monitors location and time these behaviours were monitored.
Insured can accede to this data by way of a customized Web portal, where they can get the lowdown on their overall behaviours, enabling them to take the necessary corrective actions to their driving. In addition, every week, Mobiliz customers will receive an activity report on their behaviours and the impact these may have on their monthly bill. This report will also be accompanied by tips and hints for better driving awareness.
Another novelty: the Mobiliz program is 100% Web-based. All operations (getting a quote, purchase, payment, claims) are totally computerized and carried out online. Mobiliz agents are available, as needed, to chat with consumers.
A User-Friendly Method and Beneficial Premium
Mobiliz’s basic premium is calculated by way of only four criteria: age, gender, postal code and insured vehicle. By simply answering four questions, a quote can therefore be completed in under one minute. Note that, in relation to traditional auto insurance programs, the age criteria was greatly disindexed to avoid unduly penalizing young drivers.
The premium then vary monthly in accordance with real kilometers driven as well as the driver’s behaviours. In addition to benefiting from a basic premium that’s already very competitive, Mobiliz’s insured who adopt responsible behaviours obtain an additional discount that can reach up to 25% of their monthly premium. In return, drivers who do not adopt responsible driving behaviours are penalized in terms of the number of speeding offences, hard brakings and forced accelerations they do during the month. Excessive speeding offences as defined by the SAAQ have specific penalties.
Only distance travelled and behaviours monitored have an impact on the basic premium. The fact of having had one or several claims in the past or during the contract does not impact on the premium.
Mobiliz offers complete protection to all of its drivers, that is, “two way insurance” with a single deductible of $250. The program’s only option is replacement value for vehicles aged 5 years or less. Insured who is not satisfied with Mobiliz services can terminate their agreement at any time, at no cost.
Let us recall that, according to the statistics compiled by the SAAQ, young drivers aged 16 to 24 are overrepresented in road accidents: although they constituted only 10% of driver’s licence holders, they were involved in 24 % of the accidents resulting in bodily injury in 2010. In 2009, young drivers committed 49% of speeding or reckless driving offences. From 2006 to 2010, speed was a factor in 52% of fatal accidents involving drivers aged 16 to 24.
About Industrial Alliance
Founded in 1892, Industrial Alliance, Insurance and Financial Services Inc. is a life and health insurance company which has operations across Canada as well as in the United States. The company offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fourth largest life and health insurance company in Canada, Industrial Alliance contributes to the financial well-being of over 3 million Canadians, employs more than 4,100 people and administers and manages assets of over 73 billion dollars. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. For more information on Industrial Alliance, please go to www.inalco.com. For more information on the Mobiliz program, please go to www.mobiliz.ca.Tags: Industrial Alliance, Mobiliz, Québec, Uniban