How Better Driving Can Jolt the Insurance Industry
Jan 13, 2020 at 8:34 am UTC by Julia Sakovich · 3 min read
Here is Joltee’s vision for fairer car insurance through ethical driving.
An emergent mobility solutions company is looking to radically reshape the future of car insurance by turning industry conventions on their head. Rather than taking the standard approach – which by necessity limits its focus to risk mitigation and the negative aspects of driving such as road accidents – Joltee has instead created a rewards-based system in which good driver behavior is directly incentivized and reinforced.
The car insurance industry has labored for a considerable time under the same well-worn model: vehicle owners effectively make a cash bet against themselves, knowing the only way to ‘collect’ on the bet is in the event of an accident or some other unfortunate circumstance. At the same time, insurance companies bet that the collective probability of all payouts from all accidents will be a lesser figure than the combined receipts collected from their customers betting against themselves. In this system, there is no winning scenario for customers, and when an insurance claim becomes a necessity, everybody loses.
To change that, Joltee has developed an innovative technological solution which directly monitors and collects data on the behaviors and actions of drivers, storing data within a secure, but transparent blockchain system. The value of rewards to drivers is calculated by an AI that weighs and identifies positive driving habits and uses this information to allocate appropriate rewards at the end of each trip in the form of JOLT, an ERC20 token on the Ethereum blockchain.
Joltee has dubbed the new system a “wake up call” for a sector that has remained largely unchanged since motor insurance first became compulsory early in the last century. Working alongside major players in the insurance and electricity industry, Joltee is now looking to create a network of key players, developing a supporting ecosystem in which JOLT tokens will access a myriad of goods and services. Such provisions will include vehicle charging stations, the payment of electricity bills, and insurance payments among others.
The Insurtech company also intends to gamify the driving experience by allowing JOLT holders to stake tokens against each other, rising to driving “challenges” by driving more safely and ethically than before and gaining bragging rights over other drivers in the process. The advantages to safer driving will go beyond more social status however, as safe drivers will be able to rent and insure higher quality vehicles over time, trading upon their overall driving experience.
Explaining how the Joltee system would be fairer for all, company CEO Soundar Adavane explained:
“In the traditional insurance model, accidents have no direct benefit for anyone, while good driving, at least in the short term, has no direct monetary reward for drivers. At Joltee we want to reward drivers for good behaviour, and at the same time encourage the behaviors which improve road safety standards for all. Joltee creates a scenario in which everybody wins.”
Joltee is currently in discussions to expand its network with free-floating company Lime, the ride-hailing app Kapten, and the scooter sharing service Voi.
The Insurtech company is presently conducting the private sale of its crowdfunding campaign, with JOLT tokens available to all participants who qualify at a 50% discount until January 30th, 2020. The general sale will commence thereafter, with 40% of the total raise earmarked for platform development.
The management of the Joltee presale is being handled by Swisscom Blockchain, in partnership with one of Switzerland’s foremost crypto-specific banks.
Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.