Another day, another insurtech idea. This time, challenger bank Revolut has launched a pay-per-day travel insurance plan which relies on a mobile phone's geolocational services.
The scheme, which Revolut claims to be the first of its kind, can be turned on and off from a user's phone. When in use, it will use the phone's location services to calculate the cost of insurance – starting at less than £1 per day.
This will cover medical and dental care, and can be extended to include features such as winter sports and family and friends coverage. The cost per day varies depending on location – Europe's base rate will start at 99p, which moves up to £1.50 for North America and £1.25 for the rest of the world.
There will be a cap on the costs for the year, and users can instead choose to pay a fixed sum for a standard annual travel policy.
"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," said Revolut's chief executive and founder Nikolay Storonsky.
The bank partnered with Thomas Cook Money, the financial services arm of travel group Thomas Cook, to create the policies which will be issued under the firm's White Horse Insurance brand.
Revolut, which launched two years ago, has also recently added cryptocurrencies support, device insurance and credit to the services on its app. It said more developments in smart insurance products would soon follow.