AXA’s Solution for Commercial Fleets
Sunday, 07 October 2007

Beginning in 2008, AXA will offer a type of Pay-As-You-Drive insurance to commercial fleets which relies on the « machine to machine » technology of Orange. This is a first in the French market where several Pay-As-You-Drive™ proposals have been turned down by the CNIL.

 Consequently, AXA has chosen to start off slowly, limiting their offer to fleets of vehicles and avoiding the problem of individualized surveillance. This method requires the installation of an electronic device on the vehicles that collects many types of data: the number of kilometers traveled, the type of route taken, the duration and number of times certain speed limits are exceeded. This data is compiled by Orange, which acts as an escrow service (a confidential third-party) and transmitted to AXA who then returns the data to the CEO of the business/fleet and proposes preventative actions the fleet can take to lower their insurance rates.

It is, therefore, general statistical data that AXA and Orange Business give their clients. In this way, the data can be used to evaluate risks based on the number of kilometers traveled and the type of roads taken, but also based on driving behavior.

The CNIL gave the green light to AXA’s project because of how it uses the data ; the insurance company makes its decisions based on general statistics for the entire fleet, not on the individual conduct of each vehicle. What’s more, AXA was granted their own « CNIL correspondant » who specializes in protecting data of a personal nature.

The solution reached by AXA, which is a compromise between their need for studying driving behavior (averaging speeds of several vehicles) and satisfying French legislative constraints (the CNIL), is a beautiful example of the creativity necessary for adapting PAYD to the French market. All that’s left now is to conquer the individual insurance sector. And only a PAYD offer like e-bonus’ presents a compromise for individuals similar to the PAYD plan AXA has designed for commercial fleets.


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