Folksam connects safe driving to car insurance premiums

Areas Used

  • Development
  • Industrialization

Folksam connects safe driving to car insurance premiums

Folksam’s Köra Säkert (Drive Safe) is the first connected car insurance where the premium is based on how the customer drives. WSI and its partners developed an in-car indicator that helps drivers adhere to the speed limit, which helps save lives, reduce emissions and can lower the driver’s insurance premium by 20 percent.

Folksam is one of the largest insurance companies in Sweden. Founded in 1908, the company has about four million customers and insures one in five cars in Sweden. Folksam is a customer-owned company that aims to contribute to long-term sustainable, social development through research, information, debate and practical initiatives.

Direct feedback to drivers to improve safety

“The idea around connected car insurance was born after a previous research project,” says Stina Wärn, Product Owner at Folksam “Research showed that a combination of direct feedback while driving and financial incentives resulted in a reduction in speed of test drivers. We also know that by reducing speed by a couple of kilometers an hour can save at least 40 lives per year on the road in Sweden.”

In 2015, Folksam started collaborating with WSI in order to develop a device that can give car drivers real time feedback on their driving. By connecting the device to Folksam, the insurance company could reduce the cost of insurance premiums for drivers who follow speed limits.

An exciting collaboration for a completely new service

Developing the Drive Safe Service was a collaboration between WSI, Folksam, telephone company Telia, mobile product developer Springworks, and industrial designers No Picnic.

“We looked into a number of alternatives before we made the final choice on the device,” says Jonas Strandell, WSI’s COO and R&D Manager. “During the course of the journey, we discovered exciting innovations and have applied for patents in Folksam’s name.”

The Drive Safe indicator was tested in WSI’s lab, followed by integration tests, then rigorous drive tests by Folksam. Telia Sense, Telia’s IoT ecosystem, is the cloud hub for all the driving data. After development, WSI initiated mass production at a factory in Poland.

Indicator launched to promote safe driving

Folksam’s user-friendly indicator uses green, yellow and red lights to provide drivers with information on their speed in relation to the actual speed limit. The indicator communicates in real time with the Telia Sense system.

“The indicator is only one-third the size of a smartphone, yet the light that indicates how you are driving is clear and strong,” says Stina Wärn. “I think that WSI and No Picnic have really succeeded with the design and technology of it.”