Swedish Insurtech Paydrive Partners With CMT to Enhance its Telematics Platform
CAMBRIDGE, Mass.–(BUSINESS WIRE)–Paydrive, the Nordic region’s leading insurtech in car insurance, is partnering with Cambridge Mobile Telematics (CMT), the global leader in smartphone telematics, to upgrade its unique pricing engine with industry-leading driving intelligence.
Paydrive’s innovative premium-setting engine, the Quarterly Optimized Telematics Algorithm (or QOTA) will receive new driving data and rating insights from CMT’s DriveWell platform, which powers more than 80 telematics-based programs in 20 countries worldwide. These new data streams from CMT’s Tag IoT device – as an alternative to the current OBD-II dongle – and app-based smartphone telematics will allow Paydrive to further optimize pricing thanks to the most accurate mileage and driving behavior data, as well as traditional pricing parameters.
“We have tested lots of solutions that combine smartphone apps and tags of various kinds, but none come close to Cambridge Mobile Telematics’ quality and performance. In combination with new cars’ direct connections, this improves ease of use, reduces cost and enables us to reach even more car insurance customers,” says Carl Johan Thorsell, CEO of Paydrive AB.
CMT’s DriveWell platform uses smartphone sensors to measure risky driving behaviors like speeding, hard braking, sharp turns, sudden acceleration, or phone distraction. CMT’s platform provides more than 70 insurers worldwide with driving intelligence and advanced risk assessment.
With this new partnership, Paydrive further broadens its technology platform expertise. Paydrive plans to launch the new service in spring of 2022. It will be available in Paydrive’s main product which is a hybrid of distance and behavior-based insurance, with premiums initially based on conventional criteria. Drivers pay monthly, with updates to their premiums every three months from telematics-based driver risk data.
“We are delighted to work with Paydrive on this unique hybrid model and will wholeheartedly support its expansion in and outside Sweden. Their dynamic QOTA algorithm, which is optimized quarterly, enables great pricing accuracy and fairness,” said Ben Bowne, Senior Vice President of Business Development & Partnerships at CMT.
About Paydrive AB (publ)
Insurtech Paydrive AB was founded in 2013 by Andreas Broström and has since 2016 offered pay per mile car insurance in the Swedish market. Paydrive offers car insurance in a new and innovative way. Based on data collection, based on the number of miles driven, the company offers personal insurance that encourages safe, sustainable and cost-effective driving. In 2019, the company was awarded the Swedish Insurance Association’s annual prize. Paydrive is listed on the Nordic Growth Market, Nordic SME.
CMT is the world’s largest smartphone telematics provider, powering more than 80 enterprise programs in 20 countries. Founded in 2010 based on MIT research, our technology serves several million drivers through our partnerships with leading insurers, rideshares, cellular carriers, personal safety companies, and automakers. CMT’s telematics platform measures driving behavior to empower driver improvement and reduce risk, provides instant crash alerts and roadside assistance to drivers in need, and creates a smooth and efficient connected claims process. For more information, visit CMT.ai.