Coverbox recruits COO ahead of product launch

Coverbox has appointed Martin Williams as chief operating officer as it prepares to launch its new telematics box.

The former business development director at Capita Insurance Distribution says a recent report by Coverbox into the behaviour of thousands of drivers since 2009, sets an overwhelming case for changing the way the insurance industry sets premiums.

And the firm claims its new behavioural insurance product, which operates through an interactive device, will set the foundation for the majority of telematics-based vehicle insurance products.

Williams added: “That report has indicated we’re on the verge of a revolution in the way we insure drivers.

“We record, analyse and compare driving behaviour as against applying insurance ‘proxy ratings’, which is the established approach, and, arguably, perhaps outdated; we get factual driving information, and base rates on driving style and location of vehicle rather than lifestyle and home address.

“While there is no doubt current real-time driver behaviour information out there, the vast majority of it cannot be set against a behavioural baseline which means premium rates may be set too high or too low. Our baseline is set against billions of lines of data collected pretty well since the introduction of telematics into the insurance industry.

“The report illustrates that both insurers and drivers will be better off if insurance is rated on driving style rather than lifestyle, and that good drivers don’t suffer from the behaviour of bad drivers.”