THE AI REVOLUTION
Digitalisation enables new packages and offerings of both products and services. Consumers get used to personalized and more flexible offerings. Data-driven models make it possible to provide usage-based services rather than the old fashion subscriptions or fixed contracts, as methods of retention. With Enerfy full digital insurance, customers get an insurance with individual premiums, paid per mill or usage without any binding terms. This is customer retention, enabled by AI.
Lower claims costs lower premiums
Motor insurance premiums are continuously increasing in price, today too expensive for many consumers to afford. Leaving people unprotected or insufficiently protected. This negative trend is caused by skyrocketing claims costs, we need to put an end to this or cost of premiums will get out of control.
With our Enerfy solution, claims costs are reduced by 40%, leading to much lower premiums.
Our AI correlates the driver score to a claims frequency
What do you think would happen if everybody in a bar would share the bill of tonight? That everybody would pay for 3 pints of beer! A glass of sparkling water at the same cost as 6 pints of beer! In this case, nobody has the incentive to drink less and this is exactly how a car insurance work today. Nobody has the incentive to reduce claims costs.
Current premium model; average pricing based on old claims statistic, where basically everybody is sharing the cost of claims, is very discouraging as nobody is able to influence the price of insurance. On the contrary, current model encourages people not to bother, my part of the claims disappears in the big picture, everybody gets worse rather than better.
This is what we are changing. With our AI based premium model, that correlates driver scores to claims frequency, people pay for themselves and can influence the cost of the premium. We are giving people the opportunity and transparency to take a stance. See the cost per trip driven - rather than a fixed annual price, no matter have you behave on the road – is evidently inspiring people to a measurable change in driver behavior, leading to 40% lower claims frequency.
AI identifies the correct exposure
Through our technology we find drivers who should be rewarded and those driving in a way that is dangerous for road safety. By pointing out the insurance company’s highest risk drivers, our technology platform can see the company's biggest claims costs and where the unnecessary costs lie.
A solution that contributes to behavioural change
By rewarding drivers who deserve it and allocating higher costs to those who risk life in traffic, behavioral change can occur. Drivers who drive well will continue to do so and the vast majority of drivers will want to change their driving behavior to get as low a cost as possible per the month.
This means a triple win situation for the drivers, who get lower insurance costs, for insurance companies, who reduce the number of high-risk drivers and reduce unnecessary damage costs, and for the environment as the companies will have a 17 percent reduction in carbon dioxide emissions.