Norwich Union is offering an usage-based auto insurance policy called "Pay As You Drive". The insurance firm uses GPS (Global Positioning System) technology to calculate monthly insurance premiums based on when, where and how often the car is used, to give the customer better control over the monthly premiums, according to Norwich Union of the U.K. Norwich Union is the U.K. business of British insurer Aviva Plc.
The in-car GPS devices allow Norwich Union to build the insurance policy around each individual motorist, according to Norwich Union. Customers will receive monthly bills based on car usage, including time of day, type of road, and mileage, the company said. The bills will look similar to mobile phone bills, with the premiums for each trip calculated and totaled, it added. This transparent approach will help customers control their auto insurance, Norwich Union added. The pricing for "Pay As You Drive" insurance can begin from as low as a penny per mile.
The "Pay As You Drive" insurance also allows a range of in-car features including round the clock access to a personal assistant through the car's in-car Assistance Button that can provide the user with help and support in the event of an accident or breakdown, a free 30-day trial of satellite navigation and a free 30-day trial of speed camera detection, according to Norwich Union.
The Teradata warehouse provides a scalable, high-performance and data warehouse for collecting, correlating and analyzing the data generated for the new insurance policy, according to Teradata. The analytical power and scalability of the Teradata data warehouse will enable Norwich Union to continue rating and managing more number of customer trips on a daily basis, while managing the associated risk, Teradata added. Norwich Union will also be able to take advantage of the increase in information by combining with other data like traffic information to customize the product to meet the needs of different customer segments, it added last week.
In just two years, the 5,000 drivers in the pilot have recorded data on nearly 100 million miles from over 10 million trips, Teradata said. Norwich Union expects data collection rates to increase more than fifteen-fold in the first year after the complete launch, with the Teradata system capable of scaling to various levels. Every trip made by a customer on each day will be analyzed in the Teradata warehouse and the intelligence passed on to the billing system to generate individualized customer premiums, according to Teradata, a data warehousing software division of NCR in Dayton, Ohio.
Norwich Union selected the Teradata active data warehouse as the base for its requirements after in-depth analysis and evaluation. The data warehouse is a critical, operational component of the service, and the insurer needed to move its operations to a data warehouse that could support continued increases in data volumes, without compromising on performance or increasing total cost of ownership (TCO).
The 'Pay As You Drive' insurance shows how technology can bring unexpected benefits to customers, by using new developments in GPS and data warehousing to charge customers for actual usage and risk, the company said.
Teradata Professional Services worked in tandem with Norwich Union to provide the design, and helped in the implementation of the data warehouse and the disaster recovery solution, according to Teradata. The data warehouse will be supported by a duplicate disaster recovery system that completely mirrors the main system. Teradata Professional Services will also support the backup, archive and recovery services, and business critical support, Teradata said. The data warehouse will be capable of utilizing nearly 100 terabytes (TB) of data storage totally, it added.
The Norwich Union project shows how data warehouses are being used to deliver operational applications as well as decision support, according to Teradata. The data warehouse approach has allowed Norwich Union to bring a revolutionary new product to market, Teradata said.
