Toronto, ON (Jan. 8, 2019) – At CAA Insurance we believe that insurance options can be based on individual lifestyles, accessible at a competitive price and convenient payment plan. To meet the needs of today’s consumer, we developed Canada’s first “pay-as-you-drive” insurance offering, CAA MyPace, that provides unparalleled control and choice for consumers, by giving them greater control over their premiums.
Features, Uses & Benefits
Ontarians lack choice and control over auto insurance when they can have choice over everything else. Whether people drive a few kms daily to use transit, drive locally and head south for the winter or drive small distances, there is a previously untapped opportunity to consider the lifestyles of consumers in insurance solutions. CAA Insurance understands that cars serve a purpose in daily lives but for many, they don’t play the central role they once did. Today’s technology provides consumers with choice and control in so many ways (ordering coffee, groceries and clothing through phones for example) and often benefit with saving time and money. Why can’t we enable motorists the ability to control their auto insurance?
Taking insurance from the traditional silo products to inclusive insurance offerings, CAA Insurance has recognized market needs and responded to them. CAA MyPace puts consumers’ needs first.
Through telematics and new billing technologies it allows motorists to track how much they drive and the ability to pay for auto insurance based on that mileage. Motorists start with a base rate and are charged in one-thousand kilometre increments. Those driving less than 9,000km a year are likely to save when compared to a traditional policy.
CAA Insurance integrated several existing technology platforms and developed new properties to enable this first to market offering in a way that created no disruption to the motorist. Drivers simply insert a telematics device to their car, download an app, and then drive!
Launching CAA MyPace was a complex undertaking involving actuarial modelling, regulatory collaboration, integrated technologies and marketing efforts. But together, they demonstrate how insurance can be re-imagined to better meet consumer lifestyles.
- CAA Insurance worked with a telematics provider, Octo Telematics, on the CAA MyPace app and web portal. Both platforms can display distance and support auto, or manual reload;
- Guidewire integrations enable the manual and automatic payments triggered by distance, along with real-time reload reminders via SMS and email;
- CAA Insurance also developed a website, CAAMyPace.com, to help explain the program that includes a tool for evaluating suitability and directs users to their insurance distributor of choice through a search tool;
- Online quote flows were also evolved to enable users to compare their payment options. These features were also available to our broker partners through Applied WebRater since September.
CAA Insurance’s expertise in the Guidewire suite of products, in addition their learnings from their telematics offering, enabled this innovative billing plan. CAA built manual and automatic payments triggered by distance and automatic reload reminders via SMS and email. The result is an integrated, seamless, real-time program. These platforms are designed to allow for enhancement and improvements as the business processes evolve over time to continuously optimize service and customer experience.
CAA has broken out of the traditional rating practices for Ontario automobile insurance. This new model allows us to rate each customer on their individual characteristics such as vehicle use, annual mileage and driving experience. However, where CAA Insurance has distinguished itself, is by moving away from the traditional time based annual pricing model, to a time vs. distance model. Introducing the exact amount of distance driven into the equation, resulting in a more personalized rate for customers which is unavailable elsewhere is Canada.
Simply put, CAA MyPace was the culmination of technology collaboration. Utilizing analytics tools to find new customer segments, upgrading telematics technology to fit product variation and developing guidewire capabilities to support new customer servicing, which all results in increased customer choice and flexibility.
This combination of innovation on both the business and technical sides helped us to deliver a first to market payment program that supports diverse lifestyles and embraces new and emerging technologies.
For more information visit CAAMyPace.com.
After launching in July, CAA MyPace has exceeded expectations of success, spanning both the new program and overall business performance, some key metrics include:
- Increased sales – an increase of 30.3% in Auto Insurance policy sales
- New diversified customers – 70.74% of CAA MyPace sales are new customers to CAA with sales more frequently located in urban areas
- Cross Sell Opportunities – growth in Property Insurance sales of almost 6.5%
- Increased closing ratio – increase of 11.06% across overall book with CAA MyPace closing at almost double the rate of traditional auto
- Call Volumes – achieved of 147% of target
- Over 200 articles and pieces published by industry, news and trade media including written, live interviews and news clips
- Over 25 Million impressions with the Press Launch in May and has since eclipsed 30 Million
- The PR efforts alone garnered a waiting list of 1400 prospects!
About CAA Insurance
CAA Insurance Company was originally established in 1974 and built on a history of providing safety to Members. Today, as one of Canada’s most trusted brands, our evolution is finding ways to offer solutions for ALL Canadians that fit their lifestyle.
Along with our traditional coverages, CAA Insurance has created unique solutions that fit consumer lifestyles, including; Member discounts, Home Equipment Breakdown, CAA Connect® and CAA MyPace™.
In 2015 CAA Insurance entered the broker channel as…CAA Insurance. Providing customers the same products at the same price under the same trusted CAA brand, however they prefer to do business with us.
About Octo Telematics
Octo is the number 1 global provider of telematics and data analytics solutions for the auto insurance industry. Founded in 2002, Octo is one of the pioneers of the insurance telematics industry. Today, Octo is the largest and most experienced insurance telematics company in the world, transforming auto insurance through behavioral, contextual and driving analytics for more than 60 insurance partners. For more information, please visit octotelematics.com.
Source: CAA Insurance Company