5 min read By Foo Boon Ping insurance telematics solution provider aims to leverage the huge automobile commercialize and high rate of smartphone penetration to grow usage-based indemnity in the country In 2010, China overtook the US to become the largest car commercialize in the earth. More than 20 million newly cars are registered in the area annually, and the number is estimated to have reached about 25 million in 2018, despite it being the beginning drop in annual newfangled car sales in 28 years. however, new car registration is forecasted to hit over 33 million by 2025.

consequently, China is besides the world ’ south largest car insurance grocery store. With the state ’ south high rate of smartphone adoption and rapid exploitation of mobility ecosystems, it has the potential to be an attractive grocery store for innovative products such as usage-based insurance ( UBI ), where policyholders pay premium according to actual custom of the vehicle and how they drive .
A holocene learn by PTOLEMUS, a Brussels-based research and scheme confer firm focused on mobility, showed that the mobile UBI market has grown to 4.8 million policyholders as of the second one-fourth of 2018, representing about a quarter of the total. It expects the global market for mobile UBI to expand at a compound annual growth rate ( CAGR ) of 39 % up to 2025 to reach 60 million users, and much of that will come from Asia Pacific, and China in particular.
not surprisingly, much of the project growth of the global UBI market will be driven by taiwanese insurers and drivers, enabled by domestic insurance engineering ( insurtech ) and telematics solution providers .
One such technology enabler is Shanghai-based PingJia Technology ( PingJia ), a pioneer in the development and provision of driver behavioral analytics solutions. The ship’s company has deep automotive OEM ( original equipment manufacturer ) expertness and resources. It is vertically integrated within the automotive and indemnity industries and is playing a lead function in the growth of an international diligence standard for telematics and UBI .
Jack Li Xiankun, founder and president of PingJia Technology commented : “ In 2009, when most chinese OEMs and the industry were discussing the future of the “ internet of vehicle ” ( IoV ), we collaborated with the ChangAn Automobile Group to showcase the first application of IoV in China at the Beijing Auto Show. ”
Creating the automotive and insurance ecosystem
According to PTOLEMUS, UBI has come a long room in China since the premium price reform rolled out countrywide in 2017. The commercialize is advancing through onboard diagnostics ( OBD ), embedded devices and smartphones .
In 2018, respective insurers in China have had their UBI solutions passed the reappraisal by the China Insurance Industry Association ( CIIA ). With the regulator being more elastic and encourage of UBI solutions, the market increase is expected to accelerate .
Li believes that the future of UBI lies in the smartphone and mobile app, he explained : “ Smartphones with their in-built range of sensors and smart apps can replace conventional in-vehicle and give telematics. Consumers in China spend relatively longer menstruation on their mobile phones, averaging 14 hours per day, so that is the favored hardware to use. In summation, newer cars come pre-installed with OBDs which can well connect with mobile devices, therefore, we remove the issue of add costs of give devices and potential confusion over the options of hardware to choose from. ”

He referred to the late $ 500 million investing that Cambridge Mobile Telematics received from Softbank as an endorsement of the engineering and the mobile UBI commercial enterprise mannequin. He remarked : “ In the West and develop economies, there is growing recognition that mobile technology is the game changer. I believe the impact will be even bigger in China because of the size of the market and how everyone has embraced mobile connectivity. ”
PingJia is besides building an ecosystem of crucial stakeholders to drive the UBI business. Ping An, China ’ randomness largest insurance company, is a strategic spouse that it works with on the underlying insurance products. The company besides has three subsidiaries ; ZhongAn Automobile, an automobile franchise, Shanghai XinHe Insurance Broker, an policy brokerage house segment, and Shanghai Auto Network, an automobile related network portal/platform, that cover the entire automobile ownership value chain .
Li shared that PingJia plans to launch in April 2019, the largest real-time data inquiry and exchange platform that will connect 43 million cable car owners and their vehicles. It will leverage AI behavioral analytics to contextualise the customer driving travel, customised to China requirements and optimised for omni-channel experiences .
The platform will provide taiwanese insurance and automotive companies with rich and detailed insights into their customers ’ driving behavior and mobility profiles, enabling them to offer more individualized and increasingly contextual experiences .
Creating common standards for mobile telematics
Li stressed that PingJia is a strong recommend of open generator and platform and the creation of coarse diligence practices and standards in order to drive wider adoption. It has developed an open data platform for incident and transport mode detection based on vehicle telemetry, GPS placement data, machine and deep learn algorithm. It is leading the policy industry effort in China Insurance Information Technology Management Company ( CIITC ) as co-leader to define industry exercise and standards .
In 2014, then China Insurance Regulatory Commission ( now subsumed into China Banking Regulatory Commission ) established a set of IOV application standards for the insurance industry. In 2016, PingJia was appointed as the co-leader of the standards group with People ’ s Insurance Company of China ( PICC ). The top seven mainstream insurance companies in China are besides members of the standard group. In May 2018, the group issued its foremost set of standards.

Li hopes that the chinese insurance diligence will create some of the international best practices for the UBI industry in the future, he said : “ Although there are gaps between industry, national and international standards, there will be overlap. While the group refers to international practices to develop our standards, we hope over time some that our standards will besides be adopted as external best standard. We are already looking at new standards to address some of the innovations that are coming such as autonomous vehicles, american samoa well as the following genesis of chic networking engineering. ”
Future funding
As it becomes an increasingly accredit leader in providing advance technology and sustainable business model for the automotive, indemnity and data analytics industries, PingJia has secured over RMB 10 million ( $ 1.5 million ) in series A and A+ financing from leading China government and commercial speculation funds, including China Merchants Venture Capital, Brocade Capital and Hanfor Holdings .
It is planning to launch a series B turn of finance by and by in 2019. There is presently no alien investment in the company, but Li is open to the theme, he shared : “ We hope to find investors and funds that are reproducible with the group ’ s scheme and sight. After this turn, there will be no more extra fund-raise in the future. ”

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