ZUG, SWITZERLAND, Oct 26, 2020 - (ACN Newswire) - - Genadi Man, CEO of kasko2go, has announced that his company's advanced open source solution would be made available free of charge, to reduce the dramatic losses in the car insurance industry with a high-tech open source product. Speaking at this year's telematics trade fair (Leipzig, Germany, 6-7 October), kasko2go said it aims to make the business model of Swiss and foreign insurers "significantly more profitable"
kasko2go has been developed and tested on more than 100,000 drivers in Europe. In Switzerland the software has been on the market for almost two years. The decision is to give the 900 European and Swiss motor vehicle insurance companies free access to telematics technology, enabling them to create Usage-Based-Insurance (UBI) products without high investment costs. kasko2go is aiming at real change and optimisation in the market.
Potential to be developed
The European motor insurance market has immense potential with revenues from motor insurance premiums of 135.3 billion euros in 2016. In the same year, however, 103.5 billion euros were also paid out in insurance claims. This means that 76.5% of the income from motor insurance premiums had to be spent on claims, and explains the low margins of car insurers.*
Genadi Man explains "Why do we offer an open source solution? With the kasko2go solution approach there is enormous potential to change the industrial landscape in the field of motor vehicle insurance. Annual revenues in Europe amount to around 130 billion euros. If you take into account the high loss ratio of 76.5%, you realise that this business is not profitable. Our goal is to change the car insurance landscape sustainably - in a positive way."
Abolish an outdated business model
Traditional car insurers still base their risks on archaic parameters such as age, origin and gender. However, these business models lead to a high loss ratio because they are based on retrospective data, such as events that have already occurred. kasko2go, on the other hand, relies on empirical, behavioural and location-related information. This innovative solution is able to develop a comprehensive risk for the individual risk of each driver.
Low-risk drivers currently share the high costs of high-risk drivers. kasko2go's open source solution enables insurance companies to identify their risks in a targeted manner and to categorise them accordingly. This makes it possible to offer attractive premiums to low-risk drivers and create a portfolio with profitable policyholders.
What the experts say
Remo Weibel, Swiss Life Select for 25 years, 10 as CEO and Executive Boardmember, is an expert in financial products and serves on the Advisory Board of kasko2go. He says "For insurers, access to more behavioural data on motorists will help them to process claims more quickly and efficiently, to better understand the price of the risks they underwrite and to offer innovative new products and services to their current and new policyholders".
Frederic Bruneteau, Managing Director of PTOLEMUS Consulting Group, combines expertise in connected mobility with strategy and market analysis to support clients in shaping future mobility. Published in insurance telematics, analytics and connected vehicles, he says "kasko2go is the first company in Europe to pursue the vision of an industry standard in insurance driver rating and to take the necessary steps to achieve this goal".
*Source: Insurance Europe, "European Motor Insurance Markets", February 2019
About kasko2go AG
Zug-based kasko2go is an innovative provider of insurance solutions that aims to promote a safe driving culture in society. With specially developed AI and telematic big data assessments Pay-As-You-Drive and Pay-How-You-Drive models, kasko2go reduces insurance premiums by up to 50%. Since April 2019, kasko2go and its insurance partner, Dextra Versicherungen AG, have been offering a revolutionary car insurance app in Switzerland, which calculates the premium according to individual driving behaviour.
Genadi Man, kasko2go
e: email@example.com, t: +41 79 852 12 30
Steinhauserstrasse 74, 6300 Zug, Switzerland
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