Data analytics is changing the face of insurance industry. One-size-fits-all approach premiums may soon be a thing of the past with the uptake of data mining technology to offer more personalized products to consumers.
Garnering keen interest among local players is the use of Telematics data, a method to monitor the ‘behavior’ of a vehicle.
Think of it as a pay-how-you-drive policy, when applied to pricing a motor insurance.
The insurer installs a tracking device on a vehicle that collects speed, location and position.
The pricing mechanism is simple. The better a driver is, the lower the cost of insurance
The uptake of telematics or Usage-based Insurance (UBI) among local players have been encouraging.
Last July, AXA Affin General Insurance became the first company in Malaysia to launch telematics-based motor insurance plan via FlexiDrive.
In September, Allianz Malaysia Berhad, Etiqa Insurance Berhad and Etiqa Takaful Berhad signed
In the same month, Tune Protect Group also partnered with telco Digi to implement telematics in vehicles.
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