The insurer launched its first UBI product for policyholders here in its home state
Sensing a shift in consumer habits post-pandemic, Massachusetts’ largest auto and home insurer, MAPFRE Insurance, has embraced the future in auto insurance with the official launch of its first usage-based insurance (UBI) product.
Dubbed MotionSmart℠, MAPFRE’s product requires no plug-in device. Rather, insureds simply install the app on their smartphone. The new UBI product was created in conjunction Cambridge Mobile Telematics (CMT) and assesses a user’s driving behavior in order to provide personalized safe-driving tips, based on real-time behavior. Powered by CMT’s unparalleled smartphone telematics platform, the new UBI product measures several factors including including excessive speeding, hard braking and phone distraction.
In commenting on the collaboration, Jaime Tamayo, CEO of MAPFRE USA said, “Safer driving means fewer accidents. 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.”
“Smartphone distraction affects drivers’ perception and response time, resulting in more hard braking events and more severe crashes,” commented William Powers, co-founder and CEO of Cambridge Mobile Telematics. “We are proud to work together with MAPFRE to reward drivers that improve and reduce risk for all who share the roads.”
Further details on what MotionSmart℠ can offer Massachusetts insurance agents including the opportunity to obtain a CE credit for taking MAPFRE’s telematics course (it is waiving the registration fee)
MAPFRE is Massachusetts’ largest private passenger auto insurance, with approximately $1,257,331,943 in written premium in Massachusetts in 2020 representing a commanding 23.28% market share. It is also the 21st largest private passenger auto insurer in the U.S. As such, MAPFRE has an unparalleled view of the auto insurance marketplace both inside and outside the Commonwealth. Couple this with CMT’s status as the largest telematics company in the world and the result is a UBI product with unparalleled insight into the Massachusetts private passenger auto insurance marketplace.
Since many of these agency partners are still learning about MotionSmart and figuring out how to incorporate it into their agency offerings, Agency Checklists emailed MAPRE to learn more. In response, MAPFRE’s senior vice president, business development, Northeast region, Keith Jensen emailed the following answers to our questions.
Q) What are the reasons behind MAPFRE’s decision to create and bring this new UBI product to market?
Customers today are more interested in programs that reduce premium based on personal behavior. In a study conducted by Cambridge Mobile Telematics (CMT), 74% of consumers said they would like to purchase insurance coverage that is priced based on how they drive. MAPFRE wanted to respond to this opportunity by introducing a new user-based insurance (UBI) product. MAPFRE’s MotionSmartSM is a voluntary program for new MAPFRE policyholders in Massachusetts. The technology is powered by a smartphone app designed to help drivers stay safe on the road and save money on their premiums. We partnered with CMT, the world’s largest provider of mobile telematics, to design an app that promotes safer driving.
The direct benefits to customers include:
- Savings: Up to 10% discount on initial enrollment and up to 20% discount at renewal.
- Safety: Personalized safe-driving tips, based on real-world behavior.
- Convenience: No plug-in device required. Participants simply install the app on their phone
Q) Do MAPFRE agents have to do anything special in order to begin selling this new offering?
MAPFRE-appointed independent agents only need to offer MAPFRE MotionSmart at the point of sale. Once a customer enrolls with their insurance agent, they download the MotionSmart app and log in to activate.
Q) Do you have any specific recommendations for agents looking to offer this new product to their insureds?
MAPFRE has developed a number of tools and programs designed to help agents become familiar with our MotionSmart product. Beyond seeking guidance and input from their MAPFRE Business Development Representative, agents can re-watch our June 2021 MotionSmart Town Hall. We’ve also created marketing collateral that agents can use with their customers. We encourage agents to download CMT’s DriveWell app to see how UBI products work. Finally, we are offering a telematics course for CE Credit (MAPFRE is waiving the registration fee).
Q) What are the benefits of the new UBI products for your agents, e.g. improved profit sharing?
First and foremost, studies show that the use of UBI products translates to accident avoidance, which protects all those on the roads. CMT data shows that active app users reduce their phone distraction by 39% after 30 days, speeding by 30% and hard braking by 51%.
For agents, MotionSmart enables them to offer discounted rates to their customers through a product designed to help drivers stay safe. Customers who enroll in MotionSmart receive immediate value through a policy-level participation discount when each of the drivers on the policy registers in-app and takes at least one drive within 30 days of enrollment.
Additionally, customers have the opportunity to receive up to 20% on their renewal discount, based on how safely they drive during the policy term. Enrollees gain personalized coaching tips presented in a gamification style that is engaging and encourages participation. The program will help agency partners increase retention.
Q) Are there any incentives for agents to push this product
Yes, agents may contact their MAPFRE Business Development Representatives for more information.
Q) What insurance data about agents’ customers will Cambridge Telematics have, and how has MAPFRE protected that?
Respecting a customer’s privacy is a critical part of MAPFRE’s commitment to provide excellent service and exemplary products. The MotionSmart app powered by CMT collects and analyzes behavior/data based on a series of criteria, including phone distraction, speeding, hard acceleration, hard braking and cornering. We will not sell or rent information obtained via MotionSmart. We have a stringent privacy policy and robust security measures to protect our customers’ data and privacy.
