Tower Insurance leading digital evolution

Insurance isn’t known for its innovation. It is an industry that has traditionally sat on the sidelines as the digital revolution causes major business upheaval. But not any more.

IN THE NEW ZEALAND insurance sector, Tower has been working on some clever little digital advances, including the distribution and development of its SmartDriver app, which rewards safe driving with reduced premiums.

Launched in April last year, customer uptake and use of SmartDriver has well exceeded expectations, says Tower general manager, Mark Savage.

Given that more than 60% of Kiwis own a smartphone, Tower expected the app to be popular but it still bucked forecasts.

“It went off like a rocket. We achieved the same level of volume in two to three weeks, as we thought we would achieve in two to three months,” says Savage.

SmartDriver uses smartphone sensors and GPS to track a vehicle’s speed, acceleration, braking and cornering. Customers who use the app, and prove that they are a safe and careful driver over a minimum distance of 150 kilometres can save up to 20% on their vehicle insurance premiums.

One reason for launching SmartDriver was for Tower to attract a larger proportion of younger drivers. Research shows users of the app are split evenly across under 30s and 30 plus, says Savage.

“While we met our goal to bring in younger customers, it was interesting to see that this app has wide appeal among all age groups.”

For example, many parents of first-time or young drivers get the app because they are keen to be able to monitor how safe their children are on the roads.

“It’s like having a driving coach on your