MSIG Launches Usage-Based Motor Insurance Pilot for Consumers in Singapore
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 20201.
Besides lower premiums, drivers are able to reap the potential benefits of UBI such as:
- Immediate feedback on how to drive more safely
- Alerts on hazardous road conditions or traffic slowdowns
- Facilitation of roadside assistance or claims in case of accidents
- Location of lost or stolen vehicles
- Monitoring of children's location or driving behaviour
- Prevention of insurance fraud
"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 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."
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 compliantMetasat Data Centre. MSIG will not have access to the participants' actual location data.
"CSE has extensive experience and knowledge in applying vehicle Telematics technologies for the motor insurance industry globally, having conducted more than 15 UBI studies in Europe. 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 Colin Hookham, CSE's Group Commercial Director.
About MSIG Insurance
MSIG Insurance (Singapore) Pte. Ltd. (MSIG 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. Wholly owned by MSIG Holdings (Asia) Pte Ltd, MSIG Singapore holds an A+/Stable financial rating by Standard & Poor's.
About CSE Automotive Technologies Sdn Bhd
The CSE Group of companies was initially 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. Our products and solutions are used extensively as Original Equipment Manufacturer (OEM) equipment by major car manufacturers and Insurance companies worldwide. CSE is an ISO company with ISO 9001 & TS 16949 accreditation.
1 According to the SMA Research listed in the National Association of Insurance Commissioner (US) website on 14 Dec 15 - http://www.naic.org/cipr_topics/topic_usage_based_insurance.htm
Strategy Meets Action (SMA) is a leading research and advisory services firm exclusively serving the insurance industry - https://strategymeetsaction.com/our-research/