Safe drivers in Singapore may soon be rewarded with lower motor insurance premiums if Usage-Based Insurance (UBI) becomes widely accepted. UBI is a program where drivers allow their driving data to be shared with insurance companies who will review the driver’s eligibility for discounts on insurance premiums.
Come March this year, MSIG Insurance will embark on a UBI pilot study targeted at the local consumers’ market. The 6-month pilot study will test the feasibility of using telematics in Singapore, representing MSIG’s 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.
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 percent of all auto insurance companies are expected to use telematics UBI by 2020.
Besides lower premiums, drivers are able to reap the potential benefits of UBI such as:
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 MSIG’s technology partner, CSE, and securely stored at its ISO 27001 compliant Metasat Data Centre. MSIG will not have access to the participants’ actual location data.
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