Carro and MSIG Launches AI-Powered Behaviour Based Insurance to Reward Safe Driversby Fintech News Singapore December 14, 2020
Carro, South East Asia’s automotive marketplace, has launched a behaviour and usage-based car insurance (UBI) in partnership with Mitsui Sumitomo Insurance Group Holdings (MSIG), a member of MS&AD, a Japanese insurance company.
Drivers in South East Asia will enjoy tailored insurance policies and pricing that reflect their actual driving behaviour. Instead of the traditional packages, the auto insurance premiums will be calculated by applying data science which analyses driver behaviour and distance travelled.
The press release made no mention of whether additional devices will be installed or data of driving behavior will be collected in-app.
The insurance offering inherently encourages safer on-the-road driving behaviour, and Carro will further incentivise drivers with services at the Carro Workshop to reward those who adopt safe driving practices. Over time the technology may even be able to predict the likelihood of a driver getting into an accident in the future.
“While user behaviour auto insurance is more widespread in the US and Europe, it is just beginning to take off in South East Asia. We aim to bring data science and artificial intelligence in the insurance industry through this collaboration with MSIG, who have a significant regional presence and, like us, have also been extensively exploring the UBI space. Within the next year we expect to provide over 2,000 cars with MSIG’s usage-based insurance. We are excited to launch this AI enabled insurance model across South East Asia to help keep our roads safe and reward safer driving practices,”
said Aaron Tan, CEO and Founder of Carro.
The insurance plan will first launch in Indonesia before embarking upon a full rollout to Thailand, Malaysia and the wider South East Asia region.
By introducing this UBI, Carro and MSIG seek to reduce accident and injury statistics in the country by encouraging safe driving behaviour. By the end of 2021, Carro expects to provide over 2,000 cars with usage based insurance in the region and grow the numbers three times by 2024.
Featured image: Aaron Tan, CEO and Founder of Carro