Bitesize InsurTech: Trak Global
May 28, 2016 Chris Sandilands
Trak Global has been around since 2009 so why are we highlighting it? Having recently announced an interesting partnership with Volkswagen Financial Services (VWFS), Trak is back.
Trak specialises in motor telematics. It collects and analyses driving data for the automotive, fleet, rental and insurance industries. It set up its own broker, Carrot, in 2012, and through it operates two policies, New Driver and Better Driver, with rewards for better driving, underwritten by a panel of insurers including Ageas, Zurich and Markerstudy.
The rewards system is such that premiums are not directly altered by driving feedback. Instead drivers receive vouchers or a “Carrot card” pre-loaded with cash rewards. Young drivers are allocated a certain number of miles on their policy and, should they wish to exceed it, must buy additional “top-up” miles. The rewards are designed to motivate driving behavior – the less well one drives, the fewer the rewards. The further one drives (beyond a limit) the more it costs.
Now Carrot and Trak have paired up with VWFS to offer one year’s “free” insurance as part of a package for 18-24 year olds who buy a new VW Polo from a Volkswagen dealership. VW will embed the blackbox, Trak will collect and analyse the data and Carrot will handle policy administration and relationship with its underwriting partners. The insurance will be VW-branded as part and parcel of the deal on the car.
Last year Carrot announced a similar deal with Fiat on the Cinquecento range. Buyers as young as 18 could pick up the iconic Fiat 500 for a small deposit and less than £250 per month for 3 years – included in the package was comprehensive insurance. Other manufacturers offer similar deals but typically require a two year driving history. Like the Fiat 500 deal, this is where the VW Polo offer stands apart.
This is a hugely positive news for newly licensed young drivers who face limited insurance options and astronomical rates. It’s also great to see another collaboration between Trak, Carrot and a motor manufacturer – it looks like win, win, win from here!