Press release
16 April 2008
Denmark’s largest insurer to change mileage tariffs for around 70,000 car owners
Three years ago, Tryg was the first major insurer in Denmark to launch tariffs based on mileage in its motor policies. Tryg now takes a step further, introducing two more ‘breaks’ in the mileage tariff brackets. This will affect customers with an annual mileage of between 5,000 and 12,000 km and those with an annual mileage of between 30,000 and 40,000 km. Both groups will have the price of their car insurance reduced by some 10%.
- The new price structure provides an even better correlation between risk and price, says Peter Falkenham, Chief Operating Officer of TrygVesta. We are still talking about large groups of motorists, but experience has shown us that there is room for adjusting their premiums.
Service and innovation before price
The previous 5,000 to 20,000 km bracket now breaks at 12,000 km. Many households have a second car within this bracket together with other motorists with limited mileage requirements. At the high mileage end, all Tryg customers driving more than 30,000 km have so far paid the same price. Motorists in the 30,000-40,000 km bracket will now save around 10%. The two groups total around 70,000 customers. Prices for all other brackets and motorists remain unchanged.
- It is more important to us that our customers feel secure and feel that we provide a good service than it is to offer the lowest price at all times. But price is, of course, important. We assess risk and claims frequencies on a current basis, and we use this as our basis for adjusting our prices to customers representing a favourable claims record. In 2007, we lowered the price for young woman drivers because they have a lower risk of being involved in accidents than young men, and we want this to be reflected in the insurance premium.
We also enhanced our ‘Safe Driver’ concept, which offers a lower-priced insurance to all young people with a reasonable-sized car. As a consequence of technical developments and safer cars, we raised the engine size level from 75 HP to 90 HP, thereby doubling the number of cars falling within the scope of the arrangement, Peter Falkenham explains.
Beginning in May, Tryg will inform all relevant customers in writing about the lower-priced car insurance, and the thousands of customers who may benefit from the offer are requested to approach Tryg to have their policy changed.
TrygVesta
Further information:
Please contact Peter Falkenham, Chief Operating Officer, tel. +45. 44 20 30 30.
About TrygVesta
TrygVesta wants to be perceived as the leading peace-of–mind provider of the Nordic region. We aim to prevent concerns from overshadowing the everyday lives of our customers. Throughout 2007, our more than 3,900 employees and our service and product provision interacted to provide peace of mind on a daily basis to more than 2.2 million private customers and more than 100,000 businesses. Generating gross earned premiums of DKK 16.6bn in 2007, we are the second-largest general insurer in the Nordic region. We are the largest player in Denmark and Norway’s third largest player. We have operated our rapidly growing activities in Finland and Sweden since 2002 and 2006, respectively.