What is Data-Driven Insurance? (Everything you need to know)

Insurance is arguably one of the more important purchases you can make in your life. It can work to protect you from financial burdens and provide you with peace of mind. At the same time, you want to know as best you can that you’re paying for insurance that you need, and nothing that you don’t.

At KOBA Insurance, we believe that data-driven insurance can help find that sweet-spot. Also known as insurtech, data-driven insurance is essentially the digital transformation of products and processes in the insurance industry.

What does this mean for you as a policyholder? It means that using data, your premiums may be more accurate. In this article, we answer the question ‘What is data-driven insurance?’, detail how it works, discuss your data privacy and explain why KOBA Insurance is getting ahead of the game when it comes to data-driven insurance.

What is data-driven insurance?

Data-driven insurance, or insurtech, is an innovative solution and a digital transformation of the insurance sector that allows providers to calculate premiums that apply to your circumstances. Traditional insurers tend to rely on categories and generalisations when calculating your premiums, so how can insurtech help?

Insurtech, in a nutshell, is the collection of ‘behind-the-wheel data’. Here at KOBA Insurance, we utilise the distance travelled as a data point to calculate the premiums you could pay. This means we can tailor an insurance policy for your driving needs.

How does insurtech work?

Without going into too much detail about complex data algorithms, insurtech works by collecting certain types of data and applying that data to your premiums. For example, if you’re a policyholder of our comprehensive car insurance, we can track the distances you travel. With this knowledge, we apply your monthly driving premiums based on these distances. So, the less you drive, the less you pay. You might wonder how we track this data. No, we don’t have a monkey in your trunk noting your brake speed and average velocity. Instead, we have a much more simple solution, the KOBA Rider.

The KOBA Rider is a device that you can connect to your vehicle which tracks a driving data, such as braking speed, acceleration speeds and distances travelled. Through a digital application, we receive this data, which allows us to calculate driving premiums.

KOBA Insurance and your data

KOBA values data privacy and protection. 

We understand how important data privacy is and have processes in place to protect your data.

What’s the catch?

There’s a bit of a misconception that data-driven insurance lowers your premiums, which causes many customers to think there’s some type of hidden agenda for an insurance provider. The truth is that it may not actually lower your premiums. The point of insurtech is to help you pay fair premiums, not reduced premiums. If your driving history, habits and tendencies show you’re a low-risk driver, then you could expect to pay lower premiums.

The point is, there is no catch. We aren’t trying to pull the wool over your eyes. We simply believe our policyholders should pay for the insurance they use. This integrity and transparency are what we value at KOBA Insurance. Data-driven insurance is a win-win for both parties. You could pay fairer premiums, and we have the solace of knowing we aren’t overcharging our valued customers.

Why KOBA is leading the pack

Here, at KOBA Insurance, we’re leading the pack with our innovative technology. We’re one of the first car insurance providers in Australia to offer data-driven insurance. Our comprehensive car insurance ensures you’re covered for comprehensive car insurance. The best part about KOBA Insurance is that, as a policyholder, you pay an upfront fixed cost to cover your car while parked, and a per-KM rate for the kilometres you drive. If you’re driving less due to work-from-home, or have a second car in the garage, this could be a great option to see if you can reduce your premium while still having comprehensive cover for peace of mind.

Get a quote online today.



Any advice provided on this site is general advice only and does not take into account your individual needs, objectives or financial situation. Terms, limits, conditions and exclusions apply. Before making a decision, you should carefully read the Product Disclosure Statement & Financial Services Guide (PDS & FSG), and the Target Market Determination (TMD), which are available at KOBAinsurance.com.au to help you decide if the product is right for you. If you purchase a policy, KOBA receives a commission, which is a percentage of your premium, and may be entitled to a profit share if certain thresholds are met in agreed periods. Please ask us for more details.