Insurance company MAPFRE has launched a new usage-based insurance program, MotionSmart. The first state it’s available is Massachusetts.
When a customer takes advantage of the program, there is a 10% discount to start. Depending on the driving score offered by the app, there is up to a 20% saving, according to Keith Jensen, SVP of Business Development at MAPFRE.
After signing up for MotionSmart, the customer is sent a link to download the app. As opposed to the industry’s beginnings with plug-in devices, the app runs in the background while driving. Simplicity was one of MAPFRE’s priorities in crafting the app and MotionSmart program.
“Who we really look to, in terms of leadership, can't be other insurers, it should be companies like Apple,” said Jensen. “Really good companies who are experts in the digital world.”
The app measures speeding, hard braking, harsh acceleration, fast cornering and phone distraction. Each drive calculates its own score and responds in real time to driving quality. CMT’s data claims that app-using drivers have 39% less phone distraction after 30 days, 30% less speeding and reduce hard braking by 51%, according to the July 1 MAPFRE press release.
“It's also nice, because it does teach you if you engage with the app, it teaches you to be a better driver,” said Jensen. “I noticed personally, that I'm driving a little less quickly than I was three weeks ago and my score has moved up, which I've been pleased with.”
The pandemic has heightened interest in usage-based insurance, and MAPFRE saw an opportunity to be a leader in Massachusetts, which has not done a lot relative to app-based programs in the past, said Jensen.
MAPFRE chose Cambridge Mobile Telematics as its partner. Jensen added that CMT’s location in Boston was an added bonus due to the close proximity to MAPFRE’s location in Webster, Mass.
“Safer driving means fewer accidents,” said Jaime Tamayo, CEO of MAPFRE USA in a statement. “We are delighted to team with Cambridge Mobile Telematics to encourage good driving and, at the same time, reward customers who demonstrate a commitment to keeping our roads safe.”
MotionSmart is starting as a pilot in Massachusetts, but, if successful, will likely expand to other states, according to Jensen. MAPFRE also plans to look into claims handling capabilities offered by CMT.
