Motor insurance companies face mounting pressure from regulatory requirements, claims inflation and customer acquisition costs that have forced many to seek new approaches to risk assessment and customer engagement. Traditional underwriting models based on demographic data and historical claims patterns struggle to predict individual driver risk accurately, leading to pricing inefficiencies and customer dissatisfaction.
The insurance industry has responded by investing in telematics technology that monitors actual driving behaviour rather than relying on statistical proxies. Usage-based insurance programmes, which adjust premiums according to driving patterns, have emerged as a solution to these challenges but require sophisticated data collection and customer engagement strategies to achieve adoption.
Mastercard has entered a partnership with OCTO, the telematics solutions provider, to develop loyalty programmes that reward safer driving behaviour whilst reducing risk exposure for insurance companies. The collaboration integrates Mastercard’ s SessionM customer engagement platform with OCTO’ s driving behaviour assessment technology.
The partnership addresses industry challenges including driver retention through engagement programmes and portfolio risk management through behavioural data analytics.
88 August 2025