Chubb has introduced a travel insurance policy which activates as soon as customer leaves the country.
Mimicking auto insurance “pay as you drive” policies, Chubb’s PAYR policy requires a mobile application be installed on policyholder phones. When active, coverage starts (and ends) based on the travelers location. Of great value to frequent business travelers, there is no need to inform the insurer to travel, coverage begins as soon as the active smartphone is detected in a new country. Chubb will then bill policyholders based on their travel history.
Chubb does limit the extent of a single trip to 31 days. However, customers will be warned before the deadline and offered alternative options for the longer stay.
The technology used is similar to auto insurance carriers who leverage smartphones (and sometimes hardware) to measure the number of miles driven and then bill customers for the provided coverage.