Folksam’s Köra Säkert (Drive Safe) is the first connected car insurance where the premium is based on how the customer drives. Köra Säkert (Safe Drive) is a service that helps drivers adhere to the speed limit and thereby saves lives and the environment, with the added benefit of reducing insurance premiums.
All research points to the fact that reducing your speed in traffic saves both lives and the environment. Insurance company Folksam and WSI’s collaboration began just over two years ago with the aim of designing a product that gives drivers direct feedback on their driving. The green light on WSI’s indicator teaches drivers to drive safely. Folksam reduces the cost of the insurance premium for drivers who adhere to speed limits.
– The idea around connected car insurance was born after a previous research project. Research showed that a combination of direct feedback in the driving compartment and financial incentives resulted in the reduction in speed of test drivers. We also know that by reducing speed by a couple of km/h can (in Sweden) save at least 40 lives per year in road traffic. In May 2015 we started collaborating with WSI in order to develop a product that can give car drivers real time feedback on their driving, says Stina Wärn.
How well has the collaboration worked?
– Developing a technical product of our own was a new concept for us. Besides WSI, we have also had close contact with No Picnic, the company that designed the indicator. Also Telia and their sub supplier Springworks have been involved in the project as their service Sense is required for the service to work. I feel that WSI doesn’t just have the technical expertise that was required, but were also extremely cooperative and quick to provide us with feedback during the time that we were developing the indicator.
What challenges have you faced during the development phase?
– The light in the indicator is important. It needs to have different strengths depending on which time of day you are driving. Creating a product that is right for a car and that doesn’t take up much space in a driving compartment is a whole different parameter. The indicator is only 1/3 the size of a smart phone yet the light that indicates how you are driving is clear and strong. I think that WSI and No Picnic have really succeeded with the design and technology of it.
What do you think your car insurance policy holders will think of the indicator?
– Insurance is a low-interest product, but with the help of the Köra Säkert (Drive Safe) indicator, insurance will become a more tangible way of saving lives and money. It’s a new way of looking at insurance that I think our customers will appreciate. For us as an insurance company, credibility is essential. If we can get our customers to adhere to speed limits with the help of the indicator, we want to reward them.
Does Folksam have any concrete goals with Köra Säkert (Drive Safe) and the use of the indicator?
– We haven’t yet set an exact goal on the number of users. Of course we hope that as many of our car insurance policy holders as possible will want to be a part of making a difference. Since WSI’s employees found a new technical innovation while creating the indicator, we have applied for the patent together. It’s now a question of waiting and keeping our fingers crossed that our patent for the indicator will be approved, says Stina Wärn expectantly.
Folksam’s user-friendly indicator with a Bluetooth function uses green, yellow and red lights to provide drivers with information on their speed in relation to the actual speed limit. The indicator receives real time signals from the Telia Sense system where all the driving data is stored. The green light indicates safe driving as well as a reduced insurance premium with Folksam. Jonas Strandell is responsible for the project at WSI.
Which aspect of the project is WSI particularly proud of?
– The Köra Säkert (Drive Safe indicator) is an extremely good example of a turnkey project that we were responsible for the product development of from start to finish. We also oversaw the CE and Bluetooth certifications. The product has been approved in accordance with the new RED directive. In parallel, we have started successfully mass-producing the indicators in a factory in Poland. It has been very rewarding to be able to supply a real IoT project together with other great market players like Telia and Springworks.
It has also been fun and interesting to work with a customer like Folksam that usually works with completely different types of products and services than the product that we have developed for them. Educational for both parties, says Jonas.
How did you create the indicator?
– The industrial design, the form and the UI of the indicator itself are the work of No Picnic. A handful of exciting alternatives were looked into before we made the final choice. The product has been tested on the laboratory bench at WSI. Integration tests were then carried out with the company that makes the ODB2 unit in the system, followed by rigorous drive tests by Folksam. Telia Sense acts as the hub for the driving data that is stored in the cloud. During the course of the journey, exciting innovations have surfaced and their patents have been applied for in Folksam’s name. We are now eagerly awaiting their approval. WSI is both happy and proud to be able to contribute to safer traffic, says Jonas Strandell.
Köra Säkert (Drive Safe) is a part of Swedish telecom operator Telia’s IoT eco system Telia Sense. It is an optional extra in all Folksam’s car insurance policies and to use the service you need to be connected to Telia Sense, a technical platform with hardware, and have a subscription and the app that are sold via Telia. The customer agrees to Folksam having access to the driving data. The app also allows you to follow up your driving during different periods and provides you with information on how well you drive as well as tips to improve your driving.
– Telia Sense is a good example of a multi-partner project. It creates value for the car owner, the driver and the passengers as well as the service suppliers and signals the beginning of a brand new eco system for IoT services. WSI has been an important and significant partner in the project. We can see enormous potential for development and even more fields of application, says Hans Dahlberg, Vice President of Telia Global IoT Solutions.
In 2015, 26 100 people were killed in road traffic accidents in the EU. The death toll from road traffic injuries in the EU has decreased over the past 15 years. In 2001, as many as 54 900 people died in road traffic accidents in the EU.
Source: Transportstyrelsen och European Commission Mobility and Transport Statistics (CARE)
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