Monday, August 23rd, 2010
Real Insurance won the Product Innovation Award in the Australian Business Awards for 2010 for its innovative new car insurance offering, referred to as Pay As You Drive. This revolutionary insurance product offers drivers the ability to buy insurance by the kilometer instead of paying a set amount for a period of time regardless of the amount they drive.

Roger Grobler, CEO of Real Insurance, states that traditional models of determining car insurance prices are unfair since those who rarely drive often pay the same amount in premiums as frequent drivers who travel several times the distance. The Pay As You Drive car insurance offered by Real Insurance is the first car insurance policy for which the premiums are based on the actual number of kilometers driven. Customers' premiums are based on their own odometer readings showing how far they have driven.

Due to the success of this approach, Real Insurance has been approached by insurers in the UK and US that are interested in learning more about the product and possibly licensing the right to sell similar policies in their countries. Real Insurance has also been asked to provide input for legislation being introduced in the US and has been invited to speak at insurance industry events.

One of the side benefits of this type of policy is that customers often make a conscious effort to drive less in order to save money on premiums. This is backed up by research showing that customers who purchase the Pay As You Drive policy drive an average of eight percent fewer kilometers than those who buy a traditional car insurance policy.

As a result of reducing their driving, customers not only save up to 50% on the cost of their car insurance, but they also help reduce emissions that pollute the environment. This is good news for legislators who are seeking new ways of saving fossil fuels and cutting down on pollution.

The Product Innovation Award received by Real Insurance is just the latest in a series of awards. The company has also awards from Celent, Cannex Canstar, AB+F and Money Magazine.



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