Insurance

Firm to slash insurance premium with pay-as-you-drive software

Abiodun Atobatele, CEO., ATB Techsoft Solutions (left), with Oluwawemimo Adeniyi, Director, Small Mid-Market Solutions and Partners Group, Microsoft Nigeria, during the media launch of four unique solution offerings of ATB in Lagos.

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Chuks Udo Okonta

The Nigerian insurance industry would soon witness a revolution as ATB TechSoft Solutions a renewed software developer hopes to launch a device that enables vehicle owners pay insurance only for their driving time.

The Chief Executive Officer, ATB TechSoft Solutions, Abiodun Atobatele, who disclosed this in Lagos, says the firm would soon come up with a solution that is going to bring the price of comprehensive insurance as low as the cost vehicle owners pay for a third party insurance, adding that the service is usage based.

“Take motor insurance for example, we can expose an e-commerce site or connect using SMS technology where any individual can purchase insurance right away from anywhere they are, leveraging on our solution. We also have a particular solution that we plan to launch soon that we believe will revolutionise automobile insurance in Nigeria.

“The reason why most people buy third party policy is because they want to avoid police arresting them. They feel that comprehensive insurance is too expensive. So they don’t see insurance as a product or a service that they are purchasing. So we have a solution that we are launching soon that is going to bring the price of comprehensive insurance as low as the cost you will pay for a third party insurance by what we call usage based insurance.

“By this, we will have devices installed in your vehicle that will track your location, so when your car is parked you don’t have to pay for insurance. Right now, insurance companies use the cost of the vehicle to calculate the cost of premium for comprehensive policy. However, our solution is going to introduce usage based insurance which means that it is what you used that you will pay for. So these are the type of things that technology can do, using internet of things,” he said.

He posited that one major challenge with the Nigeria insurance sector is that it is typical, different from any other insurance sector all over the world, stressing that there is no company anywhere in the world that can boast of building insurance software that will fit into the Nigerian system. According to him, this challenge is responsible for the frequent change of softwares by most insurance companies.

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