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Insuring Safer Roads

Insurance for Safer Roads is a collaborative initiative looking at new levers to improve road safety from the perspective of the insurance industry, with a focus on low- and middle-income countries.

The Insurance for Safer Roads working group comprises representatives from Zurich, Nestle and the Global Road Safety Partnership who are collaborating towards positive road safety outcomes through heightened involvement of the insurance sector.

In May 2017, The working group published a report: ‘Insuring Safer Roads – A global guide to strengthen the insurance industry’s contribution to road safety‘ (click the link or picture below to access the full report). The report tackles the issue of data whilst building the business case for insurers to work towards safer roads.

Key messages from the report

The insurance industry has a key role to play to impact road safety. With US$ 626 billion premiums in 2016, Motor Insurance is a major business for insurers. It accounts for 12.8% of total insurance premiums 

There is a strong business case for insurers to contribute to a reduction in the incidence of road crashes by reducing risks on the road, particularly given that they actually have at their disposal many levers for actions to encourage safer driving

Insurers can influence road safety throughout the motor vehicle insurance value chain, by:

  • Phase 1: advocacy towards governments for stronger legislation, prevention and education programmes, as well as supporting and carrying out academic research on the risks related to road uses and driving behaviour 
  • Phase 2: integrate road safety incentives into their products and services to promote responsible driving behaviour 
  • Phase 3: develop strong relationships with their customers throughout the insurance’s cycle. New technologies enable insurers to have a better understanding of customers’ driving behaviour and practices, and to share personalised feedback to customers reduce road risks. 

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