Nationwide Is Helping to Create Smarter Drivers with Smart Devices
(Image Source: Nationwide.com)
More needs to be done to help make our roads and highways safer for all users. Obviously, governments must be the driving force behind change, but all periphery industries have a role to play as well.
Around the world, 1.25 million people die in road crashes each year, which equates to an average of 3,287 deaths a day. In addition to this, 20-50 million other people are injured or disabled as a result of these incidents. Road traffic crashes rank as the ninth leading cause of death and account for more than 2% of all deaths globally. They are predicted to rise to the fifth leading cause of death if action is not taken. Road crashes cost USD $518 billion globally and cost individual countries between 1 - 2% of their annual GDP.
As one of the nation's leading providers of car insurance products — along with many other financial services — Nationwide is looking to tackle this epidemic while simultaneously finding new ways to offer its clients new and bespoke services.
Nationwide
One way Nationwide is helping create safer drivers at the same time as offering its clients ever more affordable insurance products is via its new usage-based program. Dubbed SmartRide, the innovative product is designed to incentivize only using the car when necessary and behaving more sensibly when out on the roads.
"We're a company built on data and analytics and now we're leveraging data and AI to enable personalized customer experiences," said SVP and CIO of Marketing, Michael Carrel. "To do these things successfully we've had to transform how we do IT. We've been using Agile methodologies in our design-develop-implement space for many years and we're expanding that outwards into the development process including planning. That often includes a product rather than project mindset."
SmartRide is offered as an optional program for all existing Nationwide auto insurance customers and grants them an instant 10% discount on their premium simply for signing up. Once registered for the program, Nationwide sends the customer a SmartRide telematics device which they need to install in their vehicle's diagnostic port within ten days of signing up. The Nationwide website has a section dedicated to helping customers install the SmartRide device.
Once installed, the SmartRide device measures several aspects of the owner's driving habits to deduce how safe and frequent a driver they are.
- Miles Driven: Keeping miles driven down will help customers save and accumulate a discount. Lower mileage means less time on the road and less chance of an accident.
- Hard Braking: Hard braking means making sudden forced stops in excess of 7.7 miles per hour/per second. Safe drivers avoid hard braking incidents whenever possible.
- Fast Acceleration: This is a quick acceleration of speed in excess of 7.7 miles per hour/per second. This should be avoided whenever possible as aggressive driving can lead to accidents.
- Night-time Driving: Driving between midnight and 5AM can increase the likelihood of being involved in an auto accident because of being tired or distracted.
Depending on how these measurements come out, drivers can receive up to a 40% further discount from their premium. The discounts are applied weekly and customers can track their progress and get personalized feedback on their driving habits via Nationwide. The device remains installed for four to six months, at which point it is returned to Nationwide and the discount is locked in permanently.
"Driving safely is no easy feat. If you're a driver committed to staying alert, avoiding distractions, and following the rules of the road, we're going to reward you for it," says the Nationwide SmartRide website. "SmartRide, a usage-based insurance program, gives you personalized feedback to help you make even safer driving decisions. You'll earn an instant 10% discount when you sign up. The safer you drive, the higher the discounts you could get — up to 40%."
To be eligible, vehicles must have been manufactured after 1996, and there are some hybrid vehicles and diesel-powered cars which are not compatible with the SmartRide device. However, those customers who do sign up for the program can see their driving improve and their premiums decrease.
Final Thoughts
Helping to facilitate safer driving will benefit everyone. From making the roads less hazardous to saving people money through reduced premiums, smart car devices kill two birds with one stone.
You can hear Nationwide's Assistant Vice President of Financial Operations, Monika Johnson, speak at Digital Insurance 2020, taking place in July at the Renaissance Chicago, IL.
Download the agenda today for more information and insights.
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