Thailand announces the world's first auto car insurance
Thailand's medium-sized non-life insurance company - Thaivivat Insurance has partnered with the nation's largest telecommunications service provider Advanced Info Service to integrate Internet of Things (IoT) into its car coverage.
Through the national internet network Advanced Info Service (AIS), the device will send data to the insurance company. This device will automatically turn on when the car starts and turns off when the engine is turned off.
This new service has a starting price of 600 baht (approximately nearly 20 USD) for 30-day package or 144-hour class 3+ insurance. The highest price will be class 1 insurance. There is a 365-day package or 960-hour package for up to tens of thousands of baths.
The ability to bring internet to nearly all personal devices will create a huge impact on the insurance industry in the next 5 years. Insurance companies will estimate the risks of customers better, with investments in Internet of Things (IoT) devices.
Some life insurance and auto insurance companies have introduced a new form of insurance: usage-based insurance (UBI). With this insurance method, customers will use IoT devices so that insurance companies could monitor customer activities, while offering discounts or rewards for safe and healthy behaviors. By the end of the year, the insurance industry expects 17 million people to test UBI devices for auto insurance.
Both brands have developed a technology solution called NB-IoT Motor Tracker to increase the ability of car insurance products of Thaivivat Insurance. The device can send data in real time via NB-IoT network. When drivers starts and turns off the vehicle engine, the insurance service will be opened and closed automatically. This invention is expected to reduce car insurance costs by 40%.
Customers who buy such car insurance will receive NB-IoT Motor Tracker for UBI devices along with the internet for use during the insurance period. It is also easy to install. Customers only need to plug the device into their USB port in the car. This is considered the leading digital innovation that helps the insurance industry to benefit the most.
According to data from the Thai Industry Federation (FTI), the number of cars produced in Thailand in 2018 has reached 2,167,694, an increase of 9% compared to 2017. This numer includes 1,024,961 vehicles of domestic consumption (up 19%) and 1,142,733 export vehicles (up 1%).
Thailand's insurance market, which worth over 200,000 million baht, is a very large market. However, with high growth opportunities, new technology will help facilitate more consumers.
By: Gitta Russell