T-Systems and the WGV insurance group test flexible car insurance premiums

Drivers who take risks pay more: At CeBIT, T-Systems and the WGV insurance group will give a live dem-onstration of a solution that registers driving behavior and calculates insurance premiums accordingly.

For three months, T-Systems and the WGV insurance group are testing a new procedure for determining car insurance policies. Based on the solution, drivers will get insurance that is based on how they drive. The more carefully they drive, the lower their rates will be. These rates are calculated independently of how other drivers insured by WGV are driving.

The technical solution consists of an on-board computer by Blaupunkt that the Deutsche Telekom subsidiary installs in the car. The on-board unit registers data about the car's location and movement per GPS (Global Positioning System) via satellite. The system automatically evaluates this information and sends the results via GPRS (General Packet Radio Service) at regular intervals to a data center, which is operated by T-Systems. The business customer unit of Deutsche Telekom processes the data and then places it online to be accessed by WGV. The insurance provider does not need to invest in its own infrastructure. Instead, the company simply pays a flat rate per vehicle and service.

The on-board unit transmits information about the distance driven, the roads taken and the time of day, which provides a complete picture of the driving behavior. WGV takes this information into consideration when calculating individual car insurance premiums. Some of the test vehicles have also been equipped with a system that recognizes who is driving the vehicle and that can distinguish between business and private trips. Upon request, an electronic driver's log book can also be created. This log book automatically records all vehicle movements and accurately assigns them to the person driving at the time. The electronic driver's log book can be used for tax declarations and expense reports.

Transparency for policy holders
WGV policy holders can access all of their up-to-date driving information and the resulting insurance premiums every day on WGV's customer web portal e-ICIS. Additionally, they can have their information sent to them via SMS (Short Message Service).
Klaus Hackbarth, board member at the WGV insurance group, comments, "With this system, we're making our insurance premiums even more flexible. It allows our customers to have a more active influence on the amount of their insurance premium. Because the system rewards cautious driving, it also contributes to safety on the roads."

Kai Schichtel, Head of Insurance at T-Systems, says, "Policy holders now have the ability to influence their insurance premiums themselves. Conventional models use static and uncertain means to calculate costs based on mileage and the number of international trips. Our solution holds an advantage for insurance companies as well: more flexible pricing policies retain customers."

WGV
The Stuttgart-based insurance group Württembergische Gemeinde-Versicherung a.G. was initially founded by the municipalities and communities in Württemberg as a "self-help" establishment for public services.Together with its two subsidiaries, WGV-Schwäbische Allgemeine Versicherung AG and WGV-Schwäbische Lebensversicherung AG, WGV offers coverage to everyone throughout Germany. Streamlined administration processes and a part-time sales force as well as the implementation of state-of-the-art technology allow WGV to offer inexpensive insurance premiums. Independent comparison tests have repeatedly proven this.

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