March 2003

- by Brian Byrne

Pay as you go insurance pilot

13 March 2003: A unique 'pay as you drive' system of insurance cover is being piloted in Britain by 5,000 volunteer motorists.

The system uses the sophisticated telematics now standard in every car which will involve an insurance premium calculated based on when, where and how often the car is used.

Computer and telematics heavyweight IBM has signed a deal with insurance provider Norwich Union and telecommunications infrastructure company Orange UK.

The Orange network will transmit data from vehicles to Norwich Union. Norwich Union has an exclusive agreement covering the UK and Europe with US insurer Progressive to use data collected via telematic technology and the company's pricing method to calculate premiums.

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