30 nov 20

Aon launches lease with telematics-based pay-per-use insurance

Global insurance broker Aon has launched a personal car leasing product that includes pay-on-use insurance, giving customers the advantage of saving money when they are not driving.

The company will adjust its insurance premiums according to how far a car is driven, using a telematics system to track cars.

Called Flee, the product has been designed for the employees of Aon’s business clients, and tailored to meet the needs of the ‘new normal’ as workers prefer to avoid public transport and mix working between office and home.  

Full service lease

Launching Flee in Italy, Aon said the cars will be supplied by ALD Automotive Italia on 36, 48 or 60-month contracts, including maintenance, road tax and breakdown assistance, for fixed monthly rentals.

Flexible insurance premium

But drivers will have the option of a flexible premium for fully comprehensive insurance cover. The premium is based on a fixed cost per kilometre multiplied by the total distance driven in a month. There is also a small variable monthly fee for extra Flee services, such as booking a service and maintenance and for claims assistance in the event of an accident. This fixed figure is also multiplied by kilometres driven to calculate the total monthly charge.

Flee will monitor mileage via the telematics system - if the car hasn’t moved, the variable insurance element of the rental is zero.

“If, on the other hand, you travel, the variable part will be the value of the kilometres traveled for the cost per kilometre indicated,” said Aon. “If you travel a little more, don't worry because you never pay more than the maximum amount indicated in your quote.”

Gabriele Ratti, director of Aon Mobility Solutions, said: “We started from an innovative insurance product with high added value and, collaborating with sector leading partners, we have created an offer that goes beyond insurance, providing the end customer with an integrated mobility service."

ALD Automotive Italia, which has a fleet of almost 190,000 vehicles, said flexibility was high on the agenda of private drivers, freelancers and companies as they deal with business uncertainty. The leasing company added that Flee opened: “a new frontier of pay-per-use.”

Targa Telematics

Targa Telematics will provide the vehicle tracking technology that captures the data for the pay-per-use insurance. The same technology will also support safer, greener driving behaviours by providing drivers with a dashboard of their performance behind the wheel, including fuel consumption and incidents of harsh acceleration, cornering and braking, as well as exceeding speed limits.

Alberto Falcione, Targa Telematics vice president of sales, said: “Telematics and data analysis and management are crucial to implement truly innovative solutions able to effectively respond to changing customer needs. We provided Aon with our expertise, our automotive-specific IoT platform and a wide choice of software modules and micro-services, with the aim of helping them implement a new mobility solution.”




Authored by: Jonathan Manning