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AXA pay as you Grab – First usage-based insurance for private hire car drivers


In View Summary

Traditional commercial auto insurance has never been fair to low-mileage part-time drivers as they have to pay a fixed premium no matter how much they drive. Sensing an opportunity to appeal to this low risk segment, AXA has partnered with taxi hailing app Grab and launched AXA Pay-As-You-Grab (“AXA PAYG”).

Launched in 2016, AXA PAYG is Asia’s first usage-based commercial motor insurance that allows the policyholder (or registered Grab driver in this case) to pay for a lower base premium and only $0.06 for every additional kilometre you drive with Grab.



Specifically, as the insurance premium is calculated on a ‘per kilometre’ basis, policyholders can save up to 30 percent of commercial auto insurance base premiums though this AXA initiative.


With AXA PAYG, commercial drivers can save on their premium which is calculated on a usage basis 

The new usage based policy also provides coverage for third-party liability, including for the passenger. Furthermore, in the event of injury or death of a third party, payment can be made in installments over 12 months.

According to the Grab Team, “AXA-PAYG means drivers will never pay more than their traditional commercial auto insurance premiums. It is expected to reduce cost barriers to entry for new private-hire vehicle drivers and help to grow the supply pool of part-time drivers“.

Launching first in Singapore, the intended South East Asia wide partnership between Grab and AXA will soon be available across the region.

However, the success of this model and the AXA / Grab partnership will not stop with the distance based pricing championed by AXA PAYG. The next step is to leverage anonymised driving data such as speed, breaking and driving patterns, and route analysis to mine insights into driving patterns and develop ways to incentivise safe driving habits on the road.

Reported Benefits

Benefit to Customers

Flexible Usage-Based Insurance
Up to 30% Premium Savings
Social good – Improved Road Safety

Benefit to the Insurer

Penetration into new market segment
Access to high quality user data
Competitive differentiation by providing a need-based insurance solutions

The Digital Insurer's View

The AXA / Grab partnership exemplifies how new usage based insurance products can target niche segments through partnering with tech startups and their customers. Although this particular policy has succeeded to reduce cost barriers to entry for new Grab drivers, it remains to be seen whether AXA can repeat this feat across its product range whilst grappling with local Asian competitors and a rapidly changing digital landscape.



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