This week, ICMIF member LB Forsikring (Denmark) launched a new smartphone telematics app that will give their members greater insight into their driving and the opportunity to achieve a lower deductible. The goal is to test whether the app, called Bilist+, can help prevent traffic accidents in the future.
Via various algorithms, Bilist+ evaluates an LB Forsikring member’s driving behavior, including distracted driving, hard braking, mileage and time of day. Drivers can monitor their trips, driving styles and levels of distraction on the app. Bilist+ should give LB members a better overview of when they are driving well and when they are driving less well, while at the same time earning points that can give a discount on their deductible. Safe drivers accumulate monthly discounts on their deductibles and can save up to DKK 1500kr (EUR 200).
“We want to help increase traffic safety and prevent accidents. That is the main purpose of testing Bilist+. By giving our members insight into their driving and a financial encouragement, we hope to get more people to think about how they drive and maybe make a little change to their behavior in traffic” says Mikkel Frost Kopenhagen, Director of Strategy and Innovation at LB Forsikring.
To encourage members towards good traffic behavior, their score is first converted to deductible if it is higher than 70. Users of Bilist+ can see for themselves when they have had potentially dangerous situations in traffic and how their score is via the app. It can give them an insight into when they might not be driving as well as they could.
“With Bilist+, we are taking our purpose of making insurance redundant seriously. We want to prevent injuries and prevent accidents, although of course we are still our members’ safety net if an injury occurs. One of the injuries our members most often experience is traffic accidents and car injuries, at the same time it is one of the areas where the injury can have the most fatal consequences. That is why we are now testing a completely new avenue with Bilist+, to see whether we can make a difference in this area” says Mikkel Frost Kopenhagen.
Pilot project for the next nine months
Bilist+ is now starting the pilot phase and in the coming months will be offered to a group of LB Forsikring’s members. It is voluntary to join the pilot group, but the goal is to have a group testing of the app with 5,000 members, over the next nine months.
“We are moving out on new and exciting ground with Bilist+. We will examine whether by giving our members an insight into their driving and a financial incentive to get them to change their behaviour. A lot of people already have apps on their phone that show how they are running, cycling or moving. We will tap into that way of thinking and test over the next few months whether the same applies here” says Robert Kielerstajn, Co-head of LBeta, LB Forsikring’s innovation hub, with responsibility for Bilist+.
The data the app collects will be used to provide members with insight into their driving behavior, to calculate scores and for technical maintenance of the solution and troubleshooting, and all participants in the pilot will be informed about everything the app collects.
“We do not use data from Bilist+ for claims handling. We use data to reward those who drive well, not to punish those who do not drive so well. At the same time, you get information about your movements in traffic, which you can use to make your driving safer and avoid dangerous situations. We believe that our members can see an advantage in this” says Robert Kielerstajn.
According to the Danish Road Safety Council, 30% of Danish drivers are, at times, distracted on the road. Two in three fatal crashes in 2019 was caused by distracted driving. LB’s Bilist+ programme is being launched one year after Denmark strengthened its hands-free law.