Vehicle Networking Promote Accurate Pricing For Insurance

"Vehicle networking Insurance needs comfortable environment for development, the CIRC to manage the tube, the tube should be liberalized, and encourage insurance companies and technology companies to cooperate. "August 20th, China Insurance Regulatory Commission Vice Chairman Zhou Yanli said at the China Insurance Telematics insurance seminar organized by the Institute.

Currently, the Internet insurance including car networking business is in the early stages of development, has not yet formed a stable business conditions. In this regard, Zhou Yanli think should be implemented relatively dynamic regulatory standards. Insurance companies should protect consumer demand as the focal point, the eye can not blindly development blog, ridicule insurance nature. For this type of insurance products, regulatory agencies, "the shot shot, the halt halt."

Networking is the future of the city car Intelligent Transportation And the future direction of the automotive industry. With networked automobile automotive equipment, has become the Internet's intelligent node, connecting the movement of the car, road conditions and driver. Telematics insurance, comprehensive analysis of people, vehicles, driver behavior and other risk factors on the basis of the development of technology to improve the auto insurance pricing and underwriting policies, enhance accurate pricing power.

In 2014, Tencent, Alibaba, etc.IT Car companies are to increase networking in the field of research and penetration, launch the appropriate vehicle networking products. Currently the insurance industry PICC, China Life Insurance, Ping An Property & Casualty, CPIC other companies also have tried waterwheel networking. From 2005 In simply Car Navigation, To today's booming,2014 In the first year of China or will be deemed vehicle networking development, and auto insurance also will enter2.0Era.

Car Insurance Networking burst on the scene angle

Chinese Internet users has grown from car in 2005 50000 RMB increased to now 50 Million. According to industry forecasts,2015 Will reach 1000 Million users. Then scheduled to reach 1 Billion then, the number of cars will account for the entire 10%.

Up 2013 Late last year, Chinese civilian car ownership for 1.37 One hundred million, the amount of vehicle fleet 2.51 One hundred million. Total underwriting automobile industry 1.2 One hundred million, car insurance rate from 2007 Years 64.4%Increased to 87.34%; Underwriting motor vehicle 1.47 One hundred million, motor vehicle insurance rate from 2007 Years 38.7%Increased to 58.62%. The total property insurance auto insurance premium revenue reached 72.6%.

Meanwhile, the China Insurance Regulatory Commission to launch a new round of commercial auto insurance clauses and premium rates reform, the basic orientation of the reform is to improve the scientific and meticulous management level. Under the program has been disclosed, auto insurance pricing basis will become insured pricing pricing models, especially the maintenance cost of the car and the car will bind.

Future, with the development needs of users, will pay more attention to the actual driving conditions and driving behavior, and may be used as the basis of the final pricing. All this will depend on the vehicle data networking support.

PICC current fleet of business and personal services from two areas while promoting networking pilot car insurance. Lu Hui, general manager of PICC demand management department revealed that the team has completed the appropriate business technology solutions, and start promoting. For example, with a 180 Car fleet, to 50 Car installation Vehicle DVR equipment, The loss ratio from the whole team 129% Down 90%, Which 50 The actual loss ratio vehicles only 60%. From this set of data can be seen on the driver's vehicle equipment constraints is very obvious, on the other hand the insurance company can effectively control the fleet of risk, and fleet reasonable auto insurance pricing.

Personal business, PICC will go through four stages: the first stage is technology selection, which is to selects the front-end equipment, focusing on the stability of in-vehicle communication equipment, vehicle adaptation capacity; second stage is the model tests, such as the end to finish in Beijing 200 Trolley mounted test; currently progressed to the third phase, five cities in the country 15000 Taichung trials, further to improve the technology model, validate business model; Finally, the comprehensive promotion stage.

Pain points hard to find?

Implementation landing net insurance auto insurance, you first need to connect the Beidou system is equipped with a car or GPS The vehicle terminal, effective real-time positioning and data transfer; secondly insurance companies established within cloud computing services platform, comprehensive analysis of the existing front-end data acquisition and related information; Finally, customer analysis results through smart phone application to receive, such as vehicle status (real-time traffic, positioning search vehicles, track playback, etc.), driving behavior records (hard acceleration, sharp turns, speeding, etc.), security monitoring (illegal start, bumps, collisions, etc.), statistical reports (Fuel consumption, Mileage, illegal violation, etc.).

We can say that the car networking is one of the big data applications in the insurance industry's most promising. Vehicle networking by people, vehicles, driving behavior data collection of these risk factors, on the one hand can be used to improve the auto insurance pricing and underwriting policies, enhance precise pricing power, creating the risk of tailored solutions and insurance products ; the other hand, the insurance company can also improve risk management and control capabilities, effectively reducing the accident rate and the associated claims costs.

"However, the business model is concerned, insurance companies have yet to find the user's pain points."  deer Hui believes that now the car networking products have not formed a "killer" application that allows customers to volunteer to pay to use, so it is not real market.

Currently on the market there are thousands of vehicles engaged in the development of networking related companies, the appropriate technical solutions shielded from each other, sharing information can not be done, but also the lack of a unified standard hardware and software, so customers driving behavior analysis model is still in the initial construction phase. President of the Insurance Institute of Yao Qinghai expressed, will be set up under the Technological Innovation Institute branch, between technology companies and insurance companies to build an interactive platform will also facilitate the establishment of a unified data networking standard car.

From the end of insurance products, the market is awaiting auto insurance rates fall, companies are also considering future product direction. The standard frequency of data acquisition and collection of the front end, and more viable and convincing customers on the basis of the behavior of the model to build, but also need to continue to be explored.

In addition, customer information privacy controversy has also been accompanied by the development of car networking. In this regard, Zhou Yanli said that the insurance company must ensure that the management of customer information, prohibiting misuse of customer information, disclosure, trading. Insurance regulators to develop rules of disclosure of information, maintenance of network information security, handling public relations transparency and privacy protection.