In a joint statement issued on Monday, Digi was pushing ahead into the Internet of Things business with a ready-to-market usage-based insurance (UBI) platform.
This platform is available to all players in the motor insurance industry to develop and offer customised products to market quickly to leverage opportunies with the de-tariffication of insurance premiums.
This move follows Bank Negara Malaysia’s (BNM) recent liberalisation of the motor insurance industry.
Digi will also be launching a connected vehicle solution for all private vehicle owners in Malaysia featuring similar telematics capabilities as iFleet in the later part of 2017.
“This means you’ll have a device in your car that gathers your driving behaviour and vehicle data, and makes it accessible to a panel of insurers upon your request when your motor insurance is up for renewal.
“This provides vehicle owners like you with the freedom to choose the best premium available for your car from a competitive panel of insurers that are part of iFleet’s insurance panel programme,” they said.
In tandem with the UBI solution, Digi is also working with insurers who are launching their own telematics-based motor insurance products to provide Internet connectivity. This includes powering AXA Affin General Insurance (AAGI)’s newly launched AXA FlexiDrive product.
Since 2016, the platform has undergone robust testing with Digi’s own fleet and in a current pilot with select insurers comprising Tune Protect, Pacific Insurance, and a few more notable brands, who are early adopters seeking to disrupt the motor insurance industry.
iFleet’s UBI platform records and monitors up to 200+ data points ranging from mileage, speed, acceleration, sudden braking, severe cornering and more, for insurers to craft their risk models.
The data generated from UBI has helped these first mover insurance companies to more accurately generate a customisable motor insurance premium based on fleet and individual vehicle performances.
An added benefit is the noticeable change in driver behaviour. Digi saw close to 50% improvement in safer driving habits among its fleet drivers and a notable drop in accidents since using iFleet for its own 150 field force vehicles.
Last year, gross written premiums for motor insurance amounted to RM8.17bil with an overall 66.9% net claims incurred ratio for this segment.
Digi hopes that the introduction of UBI, will encourage safer driving habits while reducing insurance claims loss ratios for Insurers.
In Malaysia, connected vehicles and insurance telematics have been identified as two of the fastest growing use cases for IoT that will contribute towards the expected RM9.5bil GNI by 2020.
iFleet’s UBI solution is now available to any insurer looking to leverage a competitive advantage to innovate their product offerings.