"By collecting basic driving information such as trip duration, distance travelled, location, braking, and acceleration, we can build an understanding of driving behaviour and individual risk and adjust premiums accordingly. The app also allows customers to see their score versus the average score calculated from all the SmartDriver users, who have completed 250 kilometres using the app."
Savage expects SmartDriver to be "extremely popular", with over 60 per cent of Kiwis owning a smartphone.
Mac Fraser, CIO of DriveFactor, the company that developed the SmartDriver app for Tower, says he is pleased local drivers can now realise the benefits of user-based insurance through SmartDriver. "Telematics has been extremely popular around the world as people love to compare themselves to others and of course, to save money on their insurance."
"It's really good to see a private insurer sharing responsibility for improving road safety by using technology and incentivising smart choices," says Ernst Zçllner, road safety director at the NZ Transport Agency. "This is consistent with Safer Journeys, the Government's road safety strategy to 2020."
Sign up for CIO Asia eNewsletters.