MSIG Insurance will embark in March on a Usage-Based Insurance (UBI) pilot study targeted at the local consumer market, the company said in a statement yesterday.
UBI is a programme where drivers allow their driving data to be shared with insurance companies who will review the driver’s eligibility for discounts on insurance premium.
MSIG Insurance's six-month pilot study will test the feasibility of using telematics in Singapore, in a partnership with the automotive technology supplier, the CSE Group.
During this pilot study, a small telematics device will be installed in the driver’s vehicle. This device helps to record and transmit driving data. The data recorded covers the driving distance, speed and driving style such as cornering speeds and smoothness of acceleration and braking. Each journey is assessed and given a “driving score”. Through a smartphone app, the driver will be able to access his data and through Interactive Connected Car Services check the car ignition and battery status as well as vehicle location.
MSIG is currently recruiting participants to take part in the pilot study. The company is seeking active drivers who are smartphone users and are willing to have an in-vehicle telematics device installed. The installation only takes a few minutes and can be done at any location including their office or home. The data recorded will be collected and transmitted to CSE, and securely stored. MSIG will not have access to the participants’ actual location data.
“Our pilot here with MSIG will establish the highest standards for the region both in terms of technical implementation as well as privacy protection. We believe this study will lay the foundation for the future development of Insurance telematics applications and services for motor insurance pricing in Singapore.” said Mr Colin Hookham CSE’s Group Commercial Director.
While UBI is not a new concept, its adoption has risen in the last few years in more mature markets like the United States where 36% of all auto insurance companies are expected to use telematics UBI by 2020.
Safe drivers in Singapore may soon be rewarded with lower motor insurance premiums if UBI becomes widely accepted. Besides lower premiums, drivers are able to reap the potential benefits of UBI such as:
“Customers today are ever more connected and tech-savvy. In this era of big data, the Internet of Things, people are used to getting real-time information and insights to other aspects of their lives, so why not when it comes to driving?” said Mr Jeremy Lian, Senior Vice President of Technical Services, MSIG Singapore. “Telematics can help them improve their driving and may be rewarded for it, and ultimately make our roads safer for everyone.”
“Through this pilot study, we hope to engage our customers more than just during renewal of policy and the claims process, we want to create meaningful experiences with them and also for those who are interested to join in the study and learn what UBI can do,” he said.
MSIG Insurance (Singapore), a member of the MS&AD Insurance Group, is one of Singapore’s leading general insurers. With a local presence of over 100 years, MSIG Singapore offers an extensive range of insurance solutions for commercial and personal risk protection, enabling the security and safety of individuals and businesses.
The CSE Group of companies was established in Malaysia in 1985 and has grown over the past 30 years to become a market leader in Asia specialising in the design and manufacturing of advanced vehicle electronics and telematics technologies and solutions.
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