BKI launches first UBI product in South East Asia with Scope Technologies
Bangkok Insurance PCL (BKI) was established in 1947, and is today the third largest insurance company in Thailand, providing insurance offerings there and in several surrounding countries. The company is ISO certified and highly customer focused, and its vision is to be the preferred non-life insurer in Thailand. The company’s organizational structure maximizes the provision of services based on 4 business channels, financial institutions, non-life insurance brokers, agent and direct customer, with an emphasis on convenience through a Single Point of Contact.
Bangkok Insurance was looking for a way to offer its motor insurance to new demographic segments – namely younger drivers, and the commercial driver market – while mitigating the increased risks that these markets entail. It was also looking for a way to differentiate itself in the Asian market, and as a customer-centric organization, it decided to do so by offering a new, cutting edge service that its customers would also gain from: Usage Based Insurance (UBI).
Once the decision was made to be the first insurer in Thailand to enter into UBI, BKI tested several vendors’ solutions to determine which to adopt. One of BKIs requirements was that the telematics unit be easy to install, by anyone at any level of technical ability. This was crucial, since BKI did not want to have to deal with any third- party service providers.
The other key requirement was that the unit had to be highly accurate. The need for accuracy is undeniable – if customer premiums are being impacted by driving behavior events like speeding, harsh braking, or other reckless behaviors, then the insurance company must be certain that the data at the heart of this analysis is accurate. Yet this fundamental need is complicated to achieve; the challenge arises since the same telematics device must work equally accurately in a heavy SUV as in a tiny sports car, which is not trivial to accomplish.
After extensive trials, Scope’s UBI solution – which is easy to self- install – was found to be the most accurate, primarily as a result of its self-calibration method, which enables it to work equally well in motor vehicles of all sizes, shapes and weights.
As part of the UBI offering, new consumer services are now available on mobile and the Web for BKI’s clientele who opt for UBI. These include:
Family / Social Sharing
Family or social groups who give permission can track each other’s cars to ensure they are where they need to be. For example, a parent can check his or her mobile app to see where a younger family- member is driving at any point in time.
If the driver exits a defined geographic area, a warning will be emitted within the car, on the Web and mobile apps, and the relevant people will receive an email and SMS message.
Drivers can log in at any time to the portal through their mobile phone or the Web to see their driving score and compare it with others. The portal provides suggestions for how to improve drivers’ safe driving.
Automated Accident Notification
If an accident occurs, the Scope telematics unit automatically notifies BKIs central processing center. BKI gains immediate information about the severity of the accident and what type of follow up is necessary.
With the new Scope UBI solution, BKI is moving ahead into new segments, confident that it will grow its business in these new segments. In fact, according to eDaily, BKI hopes to slash its motor insurance loss ratio by 10-15 percentage points from the current level of above 60%.