Usage-Based Insurance with Rewards
Usage-Based Insurance with Rewards
(South Africa)
Background
An insurer in South Africa sought to promote safer driving behaviors while enhancing customer loyalty through a voluntary UBI program.
RewardsApproach
- Drivers installed telematics devices to track real-time driving behavior.
- Monthly driver scores based on speed adherence, smooth braking, safe cornering, and avoidance of late-night driving.
- Integrated with driver education and vehicle safety checks.
- Rewards included up to 50% fuel cashback or credit toward policy excess reductions.
Key Features
- Gamified app with leaderboards, trip feedback, and prizes.
- Real-time behavior reports to guide drivers.
- Fuel savings and financial incentives tied to safe driving.
Results
“Excellent” drivers filed 70% fewer claims.
Loss ratios halved among the safest drivers.
Over 15% improvement in behavior within the first year.
Policy lapse rates dropped below market average.
Impact
The program proved that gamification + rewards + telematics can reshape driver habits, reduce claims, and build long-term loyalty.
