Insurtech: The Traditional Insurance Revolution Has Arrived in Ecuador

July 31, 2019

If you own a vehicle, you know how traditional vehicle insurance works. However, this model has become obsolete. It has evolved thanks to technology, giving rise to Insurtech.

There are many vehicles that circulate without coverage in Ecuador. Most vehicles only have the mandatory insurance, SPPAT (formerly known as SOAT). The lack of coverage is a great inconvenience since it puts at risk not only your vehicle, but also your wallet and your investment.

What is Insurtech?

As we mentioned in a previous article in which the new service CarSync + Seguro (Insurance) was launched in Ecuador, the term InsurTech comes from the combination of the words Insurance and Technology.

This term defines all those technology companies that collaborate with traditional insurance companies to offer new products and services that adapt to the new times and offer great advantages over traditional and obsolete insurance.

The new Insurtech technology is helping to reduce the cost of insurance in addition to offering new features and better coverage that are adapted to the real needs of each driver.

Smarter insurance

This new revolution in the world of insurance is giving rise to coverage that adapts to vehicle usage. For example, in other countries there are already companies that offer vehicle insurance in which the customer pays based the usage of the vehicle.

One of the modalities is the payment according to the distance traveled (also known as ‘pay per mile’). In this modality, the user pays a fixed annual cost plus a variable cost based on the number of miles he travels with the vehicle. In this way, the driver who travels the most distance, and therefore is more exposed to suffer some accident, pays a higher price. On the other hand, the driver who travels less distance with a vehicle and has less risk, pays less.

A similar concept is one that allows the customer to pay for time traveled. This allows the user to get an insurance for hours, days or months, depending on the frequency of use of the vehicle. This example is very practical for people who only drive in a timely manner, make a car trip for vacations, or work.

A third (and original) option that has emerged in the market is group insurance. This is used, for example, by cyclists, with a payment format for insurance claims. This insurance allows to claim a damage to the insurance, and have the cost shared among all users. If there is no claim that month nobody pays anything, and if there is a claim, the cost is shared.

How about Ecuador? Is there Insurtech available in Ecuador?

The answer is yes! Location World’s CarSync is the first Insurtech in Ecuador to combine technology with the concept of traditional insurance, and to offer a new product which is more economical and easier to use for vehicle owners in the country.

What do we offer? A completely new service in the market that combines location based service for the vehicle with insurance. With this service, your car will always be connected and insured in a more modern and technological way than ever.

This service includes a latest generation 3G device, a vehicle tracking app (with numerous benefits and features) and vehicle insurance coverage. With Carsync + Seguro, you will always have a tracked vehicle and the peace of mind that you will be covered before any unforeseen event.

Until now, the location based service and traditional insurance could only be contracted separately which resulted in higher expense required.

With the backing of Seguros Equinoccial, you will enjoy 24/7 road assistance, legal assistance, and coverage against loss due to theft or accident as well as damages against third parties, among others.

In addition to the insurance coverage, there are advantages of having a connected car. This includes real-time location, travel history, maintenance alerts, improvement of driving habits, safe parking or remote opening of doors.

Want to learn more? Read this article about our new service: CarSync Becomes the First Insurtech in Ecuador, or contact us at any time through our chat and we will answer all your questions.