Photo via European FinTech Awards
It is yet another day for another insurtech idea. However, this time, Revolut, a challenger bank, has introduced a pay-per-day travel insurance plan which depends on a the geolocational services of a mobile phone.
The plot, which Revolut says is the first of its kind, can be turned on or off from a phone of a user. When in use, it will make use of the location services of the phone to calculate the cost of insurance – starting at under £1 per day.
The cost will cover dental and medical care, and it can be extended to include features like winter sports and family and friends coverage. The cost per day will vary depending on the location of the user– the base rate for Europe will start at 99p, which rises up to £1.50 for North America and £1.25 for the rest of the world.
The company said that there will be a cap on the costs for the year, and the users can instead opt to pay a fixed sum for a standard annual travel policy.
Nikolay Storonsky, the chief executive and founder of Revolut, stated: “We wanted to create a type of insurance that uses technology to help our customers and only covers you on the days you actually needed to be covered – all for the best price.”
The bank worked with the financial services arm of travel group Thomas Cook, Thomas Cook Money, in order to create the policies that will be issued under the White Horse Insurance brand of the firm.
Revolut launched two years ago. The company has also recently added support for cryptocurrencies, device insurance and credit to the services on the challenger bank’s app. The firm said that more developments in smart insurance products would shortly follow.