The power of positivity: interview with Fernand Vartanian of Onlia
What’s new in the world of insurance?
In recent years, Ontario drivers have been eligible for discounts or incentives based on safe driving behavior. Recent regulatory changes mean that some pay-as-you-go policy providers could now increase a customer’s premium if monitoring these programs reveals a risk to the provider. Behaviors such as speeding, distracted driving, rapid braking and acceleration can have a price.
At Onlia, we believe in motivation rather than discouragement and rewards rather than penalties. Our telematics-based application, Onlia Sense™, allows us to return money to our customers for safe driving, encouraging positive use of the road. For our customers, a personal driving score determines the reward share received, with the ability to increase rewards with continued and consistent use of Onlia Sense over time.
But the data tracked in the app is not tied to a customer’s premium and will not impact pricing. Not all providers follow this philosophy, and some drivers who opt for pay-as-you-go may see an increase in what they pay if they take too much risk.
How is Onlia different from other insurers?
Onlia rewards safety. Depending on where a person is in their Onlia journey, our simple rewards system encourages loyalty through positive reinforcement. Our rewards include discounts for your safety, such as over $500 per year on your auto insurance policy, including a 10% no-conviction discount, 10% discount on progressive registration, 2% discount on winter tires and more. You can get extra cash back in your wallet up to $40/month or $480/year for safe driving with Onlia Sense.
Can you explain the concept of “behavioral economics” and its role in the Onlia model?
We take a prevention-focused insurance approach based on the principles of behavioral economics. Behavioral psychology research tells us that consistently recognizing positive behavior is an effective way to change action.
But we know change doesn’t happen overnight, which is why Onlia has created tools and resources that help Canadians become safer drivers and owners over time.
What has been the impact of the pandemic on the insurance industry?
In April 2020, regulatory developments allowed insurance companies to provide vital relief to their customers. Onlia was pleased to be able to offer one month of free premium to its customers, which helped to ease the financial impact of the pandemic, providing immediate savings at a time when Canadians needed it most.
Why should companies accept the inclusion of home and auto insurance in group benefits?
Motor vehicle crashes are the leading cause of traumatic injuries and deaths in North America. In Canada, nearly 3,000 deaths are caused each year by road accidents, not to mention thousands of physical injuries. The loss of productivity at work is immeasurable and results in higher insurance premiums on a traditional health and wellness program.
With an understanding of how auto-related accidents affect overall well-being at the employer group insurance level, Onlia’s insurance program emphasizes prevention. We work with benefits providers to personalize discounts and help educate staff on how to be safer on the road. Safer drivers mean fewer traffic accidents, which is great for employers’ bottom lines and the lives of their employees.
