Global and China Automotive UBI (Usage-based Insurance) Industry Report, 2014-2017
Usage-based insurance (UBI) is a type of vehicle insurance whereby the costs are dependent upon type of vehicle used, measured against time, distance, behavior and place. It more closely aligns driving behaviors with premium rates for auto insurance. The UBI program mainly includes On-Board Diagnostics (OBD) to monitor the driving habits, pay as you drive (PAYD), and pay how you drive (PHYD).
At present, UBI has been popularized in Europe and the United States, where the insurers like Allianz, Insure The Box, Progressive, Allstate, and Desjardins Insurance have developed UBI business and made some profits. Meanwhile, the telematics providers in different countries including Baseline Telematics, Masternaut, MyDrive Solutions Limited, Octo Telematics, and TomTom Telematics have continuously optimized OBD devices to assist insurers with accurate UBI pricing.
UBI has not only allowed users to save premiums, but also helped insurers win the interests. At present, China’s automotive insurance market has high premiums and auto insurance enterprises have higher combined ratio, so the marketization of the motor vehicle insurance rate is vividly portrayed, and thus UBI came into being. As of August 2015, China’s UBI business models were as follows:
Buying Insurance that Comes with Maintenance
Typical Cases: Cooperating between Tencent Lobo, Castrol, and PICC P&C
Operation Model: PICC sold auto insurance to car owners, and the car owners who bought Lobo Box and PICC auto insurance accept oil maintenance service at designated offline service outlets and obtained subsidies through Lobo APP after payment. The preference lasts for one year, with unlimited times. Lobo APP, together with Lobo Box, can record the driving conditions.
Cooperation between Telematics Companies and Insurers
Typical Cases: Carsmart has cooperated with China Life Property & Casualty Insurance and Sunshine Insurance Group.
Operation Model: After having bought auto insurance of insurance companies, car owners can gain in-vehicle OBD from telematics companies for free. OBD records the data on drivers’ driving, and telematics companies analyze the data, based on which the insurance companies determine the owners’ premium rate. Drivers with good driving habits could get benefits. The model could help telematics companies and insurers carry out multilateral cooperation.
Cooperation between Internet firms, Insurance Companies, and Telematics Companies
Typical Cases: Baidu, Launch, and Ping An Property & Casualty Insurance Company
Operation Model: Internet companies provide internet access, APP, and big-data analysis solutions; OBD enterprises offer in-vehicle diagnosis and maintenance service; insurance companies provide auto insurance claim service. Baidu and Launch jointly released golo, which records the driving behavior, and at the same time they provide the drivers’ pricing scheme to insurance companies. Ping An Property & Casualty Insurance Company determines the vehicle insurance rate of different type of customers based on risk pricing schemes.
Cooperation between Auto Circulation Industry, Insurance Companies, and Telematics Companies
Typical Cases: cooperation between China Grand Auto, PICC P&C, and Shenzhen Autonet
Operation Model: Car owners buy cars in 4S dealership stores whilst purchasing auto insurance of cooperative insurers before gaining in-vehicle OBD device. And the customers can obtain preference for maintenance service offered by 4S dealership stores. At the same time, the customers with good driving habits will also gain premium discount provided by insurance companies.
In the future, in-vehicle OBD and supported APP will continue to optimize driving behavior monitoring, traffic monitoring, positioning, anti-theft, and risk early-warning, and make UBI pricing parameter selection and algorithm model more accurate. UBI is bound to provide more reasonable auto insurance to customers, and bring benefits to insurers.
At present, UBI has been popularized in Europe and the United States, where the insurers like Allianz, Insure The Box, Progressive, Allstate, and Desjardins Insurance have developed UBI business and made some profits. Meanwhile, the telematics providers in different countries including Baseline Telematics, Masternaut, MyDrive Solutions Limited, Octo Telematics, and TomTom Telematics have continuously optimized OBD devices to assist insurers with accurate UBI pricing.
UBI has not only allowed users to save premiums, but also helped insurers win the interests. At present, China’s automotive insurance market has high premiums and auto insurance enterprises have higher combined ratio, so the marketization of the motor vehicle insurance rate is vividly portrayed, and thus UBI came into being. As of August 2015, China’s UBI business models were as follows:
Buying Insurance that Comes with Maintenance
Typical Cases: Cooperating between Tencent Lobo, Castrol, and PICC P&C
Operation Model: PICC sold auto insurance to car owners, and the car owners who bought Lobo Box and PICC auto insurance accept oil maintenance service at designated offline service outlets and obtained subsidies through Lobo APP after payment. The preference lasts for one year, with unlimited times. Lobo APP, together with Lobo Box, can record the driving conditions.
Cooperation between Telematics Companies and Insurers
Typical Cases: Carsmart has cooperated with China Life Property & Casualty Insurance and Sunshine Insurance Group.
Operation Model: After having bought auto insurance of insurance companies, car owners can gain in-vehicle OBD from telematics companies for free. OBD records the data on drivers’ driving, and telematics companies analyze the data, based on which the insurance companies determine the owners’ premium rate. Drivers with good driving habits could get benefits. The model could help telematics companies and insurers carry out multilateral cooperation.
Cooperation between Internet firms, Insurance Companies, and Telematics Companies
Typical Cases: Baidu, Launch, and Ping An Property & Casualty Insurance Company
Operation Model: Internet companies provide internet access, APP, and big-data analysis solutions; OBD enterprises offer in-vehicle diagnosis and maintenance service; insurance companies provide auto insurance claim service. Baidu and Launch jointly released golo, which records the driving behavior, and at the same time they provide the drivers’ pricing scheme to insurance companies. Ping An Property & Casualty Insurance Company determines the vehicle insurance rate of different type of customers based on risk pricing schemes.
Cooperation between Auto Circulation Industry, Insurance Companies, and Telematics Companies
Typical Cases: cooperation between China Grand Auto, PICC P&C, and Shenzhen Autonet
Operation Model: Car owners buy cars in 4S dealership stores whilst purchasing auto insurance of cooperative insurers before gaining in-vehicle OBD device. And the customers can obtain preference for maintenance service offered by 4S dealership stores. At the same time, the customers with good driving habits will also gain premium discount provided by insurance companies.
In the future, in-vehicle OBD and supported APP will continue to optimize driving behavior monitoring, traffic monitoring, positioning, anti-theft, and risk early-warning, and make UBI pricing parameter selection and algorithm model more accurate. UBI is bound to provide more reasonable auto insurance to customers, and bring benefits to insurers.
1 OVERVIEW OF UBI
1.1 Definition
1.2 Value to Users
1.3 Value to Insurers
1.4 Challenge and Future
1.4.1 Challenge
1.4.2 Future
2 GLOBAL TELEMATICS INSURANCE MARKET
2.1 Automobile Insurance Market in the US
2.2 UBI Development Status and Trend in North America
2.2.1 UBI Market in the US
2.2.2 UBI Market in Canada
2.3 Automobile Insurance Market in Europe
2.3.1 UBI Market in Germany
2.3.2 UBI Market in the UK
2.3.3 UBI Market in France
2.4 UBI Market in Japan
3 STATUS QUO AND TRENDS OF AUTOMOBILE INSURANCE AND UBI IN CHINA
3.1 Current Situation of Automobile Insurance in China
3.2 Development Status of UBI in China
3.3 Development Trends in UBI in China
4 UBI CASES AND COMPANIES IN EUROPE
4.1 UnipolSai
4.1.1 Profile
4.1.2 UBI Business
4.2 Generali
4.2.1 Profile
4.2.2 UBI Business
4.3 Allianz
4.3.1 Profile
4.3.2 UBI Business
4.4 Insure The Box
4.4.1 Profile
4.4.2 UBI Business
5 UBI CASES AND COMPANIES IN NORTH AMERICA
5.1 Progressive
5.1.1 Profile
5.1.2 UBI Business
5.2 State Farm
5.2.1 Profile
5.2.2 UBI Business
5.3 Allstate
5.3.1 Profile
5.3.2 UBI Business
5.4 Esurance
5.4.1 Profile
5.4.2 UBI Business
5.5 Desjardins
5.5.1 Profile
5.5.2 UBI Business
5.6 Hartford
5.6.1 Profile
5.6.2 UBI Business
6 UBI COMPANIES IN CHINA
6.1 China Life Property & Casualty Insurance Co., Ltd.
6.1.1 Profile
6.1.2 Operation Business
6.1.3 Revenue Structure
6.1.4 Motor Vehicle Insurance Business
6.1.5 UBI Business
6.2 PICC P&C
6.2.1 Profile
6.2.2 Operation Business
6.2.3 UBI Business
6.3 Ping An Property & Casualty Insurance Company of China, Ltd.
6.3.1 Profile
6.3.2 Operation Business
6.3.3 Revenue Structure
6.3.4 Information on Operating Insurance Products
6.3.5 Motor Vehicle Insurance Operation Business
6.3.6 UBI Business
6.4 Angbang-insurance
6.4.1 Profile
6.4.2 Operation Business
6.4.3 Revenue Structure
6.4.4 Information on Operating Insurance Products
6.4.5 Motor Vehicle Insurance Operation Business
7 FOREIGN UBI PRODUCT AND TECHNOLOGY PROVIDERS
7.1 Baseline Telematics
7.1.1 Profile
7.1.2 Telematics Business
7.2 Vodafone Automotive
7.2.1 Profile
7.2.2 Telematics Business
7.3 Masternaut
7.3.1 Profile
7.3.2 Telematics Business
7.4 Modus
7.4.1 Profile
7.4.2 Telematics Business
7.5 MyDrive Solutions
7.5.1 Profile
7.5.2 Telematics Business
7.6 Octo Telematics
7.6.1 Profile
7.6.2 Telematics Business
7.7 TomTom Telematics
7.7.1 Profile
7.7.2 Insurance Telematics Business
8 CHINESE UBI PRODUCT AND TECHNOLOGY PROVIDERS
8.1 Tencent Lobo
8.1.1 Profile
8.1.2 Tencent iMaintenance
8.2 Beijing Carsmart Technology Co., Ltd.
8.2.1 Profile
8.2.2 Business Performance
8.2.3 Revenue Structure
8.2.4 Core Telematics Products
8.2.5 Telematics UBI Business
8.3 Nanjing Renrenbao Network Technology Co., Ltd.
8.3.1 Profile
8.3.2 Chebao UBI Business
8.4 Launch Tech Co., Ltd.
8.4.1 Profile
8.4.2 UBI Business
8.5 Shenzhen Autonet Co., Ltd.
8.5.1 Profile
8.5.2 Business Model
8.5.3 Business Cooperation Model
8.5.4 Latest Business Trend
8.6 Risk Network
8.6.1 Profile
8.6.2 UBI Business
8.6.3 Development Strategy
8.7 JiangSu CPS Digital DNA Science Technology Development Co., Ltd.
8.7.1 Profile
8.7.2 UBI Business
8.8 NICIGO
8.8.1 Profile
8.8.2 UBI Business
1.1 Definition
1.2 Value to Users
1.3 Value to Insurers
1.4 Challenge and Future
1.4.1 Challenge
1.4.2 Future
2 GLOBAL TELEMATICS INSURANCE MARKET
2.1 Automobile Insurance Market in the US
2.2 UBI Development Status and Trend in North America
2.2.1 UBI Market in the US
2.2.2 UBI Market in Canada
2.3 Automobile Insurance Market in Europe
2.3.1 UBI Market in Germany
2.3.2 UBI Market in the UK
2.3.3 UBI Market in France
2.4 UBI Market in Japan
3 STATUS QUO AND TRENDS OF AUTOMOBILE INSURANCE AND UBI IN CHINA
3.1 Current Situation of Automobile Insurance in China
3.2 Development Status of UBI in China
3.3 Development Trends in UBI in China
4 UBI CASES AND COMPANIES IN EUROPE
4.1 UnipolSai
4.1.1 Profile
4.1.2 UBI Business
4.2 Generali
4.2.1 Profile
4.2.2 UBI Business
4.3 Allianz
4.3.1 Profile
4.3.2 UBI Business
4.4 Insure The Box
4.4.1 Profile
4.4.2 UBI Business
5 UBI CASES AND COMPANIES IN NORTH AMERICA
5.1 Progressive
5.1.1 Profile
5.1.2 UBI Business
5.2 State Farm
5.2.1 Profile
5.2.2 UBI Business
5.3 Allstate
5.3.1 Profile
5.3.2 UBI Business
5.4 Esurance
5.4.1 Profile
5.4.2 UBI Business
5.5 Desjardins
5.5.1 Profile
5.5.2 UBI Business
5.6 Hartford
5.6.1 Profile
5.6.2 UBI Business
6 UBI COMPANIES IN CHINA
6.1 China Life Property & Casualty Insurance Co., Ltd.
6.1.1 Profile
6.1.2 Operation Business
6.1.3 Revenue Structure
6.1.4 Motor Vehicle Insurance Business
6.1.5 UBI Business
6.2 PICC P&C
6.2.1 Profile
6.2.2 Operation Business
6.2.3 UBI Business
6.3 Ping An Property & Casualty Insurance Company of China, Ltd.
6.3.1 Profile
6.3.2 Operation Business
6.3.3 Revenue Structure
6.3.4 Information on Operating Insurance Products
6.3.5 Motor Vehicle Insurance Operation Business
6.3.6 UBI Business
6.4 Angbang-insurance
6.4.1 Profile
6.4.2 Operation Business
6.4.3 Revenue Structure
6.4.4 Information on Operating Insurance Products
6.4.5 Motor Vehicle Insurance Operation Business
7 FOREIGN UBI PRODUCT AND TECHNOLOGY PROVIDERS
7.1 Baseline Telematics
7.1.1 Profile
7.1.2 Telematics Business
7.2 Vodafone Automotive
7.2.1 Profile
7.2.2 Telematics Business
7.3 Masternaut
7.3.1 Profile
7.3.2 Telematics Business
7.4 Modus
7.4.1 Profile
7.4.2 Telematics Business
7.5 MyDrive Solutions
7.5.1 Profile
7.5.2 Telematics Business
7.6 Octo Telematics
7.6.1 Profile
7.6.2 Telematics Business
7.7 TomTom Telematics
7.7.1 Profile
7.7.2 Insurance Telematics Business
8 CHINESE UBI PRODUCT AND TECHNOLOGY PROVIDERS
8.1 Tencent Lobo
8.1.1 Profile
8.1.2 Tencent iMaintenance
8.2 Beijing Carsmart Technology Co., Ltd.
8.2.1 Profile
8.2.2 Business Performance
8.2.3 Revenue Structure
8.2.4 Core Telematics Products
8.2.5 Telematics UBI Business
8.3 Nanjing Renrenbao Network Technology Co., Ltd.
8.3.1 Profile
8.3.2 Chebao UBI Business
8.4 Launch Tech Co., Ltd.
8.4.1 Profile
8.4.2 UBI Business
8.5 Shenzhen Autonet Co., Ltd.
8.5.1 Profile
8.5.2 Business Model
8.5.3 Business Cooperation Model
8.5.4 Latest Business Trend
8.6 Risk Network
8.6.1 Profile
8.6.2 UBI Business
8.6.3 Development Strategy
8.7 JiangSu CPS Digital DNA Science Technology Development Co., Ltd.
8.7.1 Profile
8.7.2 UBI Business
8.8 NICIGO
8.8.1 Profile
8.8.2 UBI Business
LIST OF CHARTS
Value of UBI Products to Users by Level
Distribution of UBI Companies Worldwide
PAYD Model of Foreign Auto Insurance Enterprises
Global UBI Penetration by Region, 2020E
Customer Satisfaction of US Insurance Companies, 2015
Development of UBI in Europe
Development of UBI in the UK
Operation of Chinese UBI Enterprises
UBI Market Size in China, 2014-2020E
Allianz’s Global Business
Allianz’s UBI Products
Allianz’s Competitors
Allianz and Its Major Rivals
Allianz’s Partners
Elements and Functions of Black Box
Revenue and Net Income of Progressive Insurance, 2010-2014
Revenue of Progressive Insurance by Product, 2010-2014
Progressive’s UBI Development History
Progressive’s telematics box, which fits under the dashboard
State Farm’s Premium Revenue and Growth Rate, 2011-2014
State Farm’s Loss Ratio Promised, 2011-2014
Net Income of State Farm, 2011-2014
Business Process of State Farm DSS
Premium Renewal Discount of Users that Use and Do Not Use DSS
State Farm DSS Value-added Service
DriveWise Products
Drivewise APP Services
Ajusto Small-sized Wireless Devices
Ajusto Program with Telematics Devices
Revenue and Net Income of China Life Property & Casualty Insurance, 2011-2014
Revenue Structure of China Life Property & Casualty Insurance, 2011-2014
Motor Vehicle Insurance Operation of China Life Property & Casualty Insurance, 2011-2014
Revenue and Net Income of PICC P&C, 2011-2014
Revenue and Net Income of Ping An Property & Casualty Insurance Company of China, 2011-2014
Revenue Structure of Ping An Property & Casualty Insurance Company of China, 2011-2014
Products of Ping An Property & Casualty Insurance Company of China, 2014
Motor Vehicle Insurance Operation Business of Ping An Property & Casualty Insurance Company, 2011-2014
Revenue and Net Income of Anbang Property Insurance, 2011-2014
Revenue Structure of Anbang Property Insurance, 2011-2014
Insurance Products of Anbang Insurance Group, 2014
Motor Vehicle Insurance Business of Anbang Property Insurance, 2011-2014
Vodafone Automotive’s Main Business
Vodafone Automotive’s Major Global Markets
Vodafone’s UBI Solution
Ranking of Masternaut UBI Trials in China
Modus UBI Telematics Structure
Update of MyDrive Products
Wipro-Mydrive and Major Competitors
Octo’s Telematics Services
Octo’s Partners
Clear Box Functional Module
TomTom UBI Model
Tencent iMaintenance “Buying Auto Insurance that Comes with Free Maintenance” Model
Revenue and Net Income of Beijing Carsmart Technology, 2010-2014
Revenue Structure of Beijing Carsmart Technology by Business, 2010-2014
Chebao UBI Business Model
Business Model of LAUNCH
Business Model of Shenzhen Autonet
Cooperation between Shenzhen Autonet, China Grand Auto, and PICC P&C
Risk Network’s UBI Model Development Process
Produce Release of DNA Science Technology
UBI Business Model of DNA Science Technology
Three Major Functional Modules of PICC Aiche V1.0
Main Functions of GID Lite
Value of UBI Products to Users by Level
Distribution of UBI Companies Worldwide
PAYD Model of Foreign Auto Insurance Enterprises
Global UBI Penetration by Region, 2020E
Customer Satisfaction of US Insurance Companies, 2015
Development of UBI in Europe
Development of UBI in the UK
Operation of Chinese UBI Enterprises
UBI Market Size in China, 2014-2020E
Allianz’s Global Business
Allianz’s UBI Products
Allianz’s Competitors
Allianz and Its Major Rivals
Allianz’s Partners
Elements and Functions of Black Box
Revenue and Net Income of Progressive Insurance, 2010-2014
Revenue of Progressive Insurance by Product, 2010-2014
Progressive’s UBI Development History
Progressive’s telematics box, which fits under the dashboard
State Farm’s Premium Revenue and Growth Rate, 2011-2014
State Farm’s Loss Ratio Promised, 2011-2014
Net Income of State Farm, 2011-2014
Business Process of State Farm DSS
Premium Renewal Discount of Users that Use and Do Not Use DSS
State Farm DSS Value-added Service
DriveWise Products
Drivewise APP Services
Ajusto Small-sized Wireless Devices
Ajusto Program with Telematics Devices
Revenue and Net Income of China Life Property & Casualty Insurance, 2011-2014
Revenue Structure of China Life Property & Casualty Insurance, 2011-2014
Motor Vehicle Insurance Operation of China Life Property & Casualty Insurance, 2011-2014
Revenue and Net Income of PICC P&C, 2011-2014
Revenue and Net Income of Ping An Property & Casualty Insurance Company of China, 2011-2014
Revenue Structure of Ping An Property & Casualty Insurance Company of China, 2011-2014
Products of Ping An Property & Casualty Insurance Company of China, 2014
Motor Vehicle Insurance Operation Business of Ping An Property & Casualty Insurance Company, 2011-2014
Revenue and Net Income of Anbang Property Insurance, 2011-2014
Revenue Structure of Anbang Property Insurance, 2011-2014
Insurance Products of Anbang Insurance Group, 2014
Motor Vehicle Insurance Business of Anbang Property Insurance, 2011-2014
Vodafone Automotive’s Main Business
Vodafone Automotive’s Major Global Markets
Vodafone’s UBI Solution
Ranking of Masternaut UBI Trials in China
Modus UBI Telematics Structure
Update of MyDrive Products
Wipro-Mydrive and Major Competitors
Octo’s Telematics Services
Octo’s Partners
Clear Box Functional Module
TomTom UBI Model
Tencent iMaintenance “Buying Auto Insurance that Comes with Free Maintenance” Model
Revenue and Net Income of Beijing Carsmart Technology, 2010-2014
Revenue Structure of Beijing Carsmart Technology by Business, 2010-2014
Chebao UBI Business Model
Business Model of LAUNCH
Business Model of Shenzhen Autonet
Cooperation between Shenzhen Autonet, China Grand Auto, and PICC P&C
Risk Network’s UBI Model Development Process
Produce Release of DNA Science Technology
UBI Business Model of DNA Science Technology
Three Major Functional Modules of PICC Aiche V1.0
Main Functions of GID Lite
