KOBA, an Australian start-up that is part of Insurtech Gateway Australia, has announced it will launch the first connected pay-by-kilometre car insurance in Australia – thanks to its Software as a Service (SaaS) partnership agreement with By Bits.
By Bits offers documentation and APIs, and the ability to integrate data and generate insight to support real-time mobile applications for customers. The By Bits SaaS includes a rating engine to calculates insurance premiums using modifiable underwriting and rating rules, and it splits the premium into a fixed amount and a per-kilometre amount.
It also comes with an integrated policy management system, which manages the entire lifecycle of a car insurance policy, from quotation to policy and renewal.
The deal, which KOBA founder Andrew Wong said was exclusive for the Australian and New Zealand market, will allow KOBA to bring a “fairer, usage-based insurance to Australia's 10 million low-mileage drivers for the first time.”
“By Bits puts us in the fast lane. Using this solution is like launching with a three-year pilot under our belt, enabling us to focus on our customers from day one,” said Wong. “The partnership means we'll be able to scale at speed and drive change in the Australian market much faster. By Bits gives us the first mover advantage, without the pain of product development.”
By Bits founder Callum Rimmer added: “Our tried and tested platform future-proofs insurers in an unpredictable market where mobility, customer expectations, and democratised data are dictating innovation. This pandemic has changed driving habits for millions, and the need for the global car insurance industry to catch up to customer expectations has never been more pressing.
“We’re excited to see how the platform performs in the Australian context and will be working closely with Andrew and his team to ensure a smooth roll-out of the technology.”
Wong confirmed that KOBA is now working towards a launch date with early adopters registering their interest via the company website. He said: “Once we hit our early growth and risk milestones, we will open a funding round to enable rapid scaling throughout Australia.”