Zurich Insurance and YAS' recent partnership could reshape motor insurance for the Hong Kongy’s taxi industry. Drivers are then placed into performance tiers, with higher scores unlocking broader personal accident coverage and additional benefits.

Olivia Tirona

, Hong Kong

Left: Eric Hui, CEO astatine Zurich Insurance for Greater China; Right: William Lee, co-founder of YAS.

Drivers pinch higher scores will unlock broader sum and much benefits.

Zurich Insurance Group Ltd.’s Hong Kong portion and YAS Digital Ltd. are utilizing artificial intelligence (AI) to nexus security sum straight to real-world driving behavior, which they opportunity could reshape centrifugal security for nan city’s taxi industry.

The inaugural addresses what some companies spot arsenic a persistent spread successful accepted motor insurance, which relies heavy connected fixed factors specified arsenic age, claims history and conveyance type, alternatively than really drivers really behave connected nan road. 

In Hong Kong’s dense municipality environment, that has constricted insurers’ expertise to differentiate consequence aliases reward safer driving.

Under nan program, Zurich Insurance (Hong Kong) and YAS analyse driving information to make regular capacity scores for taxi drivers, which are reviewed quarterly.

Drivers are past placed into capacity tiers, pinch higher scores unlocking broader individual mishap sum and further benefits.

“Data is analysed to make regular scores, which will beryllium reviewed quarterly,” Eric Hui, CEO astatine Zurich Insurance for Greater China, said successful an emailed reply to questions. “Drivers tin person corresponding security sum and rewards based connected their quarterly capacity score.”

The exemplary is built connected YAS’s AI-assisted TAXY platform, which combines in-vehicle monitoring systems, smartphone sensors and real-time analytics. Over a six-month aviator play ending successful September, nan strategy processed astir 39 cardinal information points and delivered a 20% betterment successful information scores among participating taxi drivers.

Zurich said nan early results propose nan attack could modernise underwriting successful a conception wherever mishap consequence is precocious and pricing differentiation has historically been limited.

Drivers pinch stronger information records are entitled to much broad individual mishap protection, including sum that tin widen to family members, according to Zurich.

The gradual building reflects a broader manufacture displacement toward usage-based insurance, wherever consequence is assessed utilizing existent driving patterns alternatively than demographic assumptions.

“Behavioural information is utilized to amended safety, not to punish drivers,” Hui said. “Driving behaviour helps america categorize consequence tiers truthful we tin reward safer habits pinch amended benefits, but we are mindful of keeping nan strategy fair.”

Beyond security coverage, nan information generated by nan level offers insights for drivers and fleet operators. The strategy analyses routes, moving patterns and downtime, letting drivers trim wasted hours and amended regular earnings, whilst helping operators optimise fleet use, said William Lee, co-founder of YAS.

As insurers progressively usage behavioural information successful pricing and benefits, concerns astir algorithmic bias and transparency person grown crossed nan industry. Zurich and YAS said nan taxi programme addresses those risks.

The scoring models trust connected nonsubjective indicators specified arsenic harsh braking, speeding comparative to ineligible limits, acceleration patterns, turning stability, distracted driving signals, mishap achromatic spots and biology risks on each journey. These indicators are designed to bespeak mishap consequence and are not influenced by individual traits specified arsenic property aliases gender.

To negociate fairness, nan programme includes regular audits of exemplary outcomes, quality oversight earlier immoderate tier changes are implemented, and transparency devices that fto drivers understand scores.

Drivers tin participate utilizing government-mandated in-car cameras aliases YAS’s mobile app, which uses smartphone sensors and GPS data. The strategy integrates upwind conditions, postulation patterns and identified threat zones utilizing Hong Kong-specific postulation algorithms, pinch machine-learning models refined continuously arsenic caller information is collected.

Both companies position nan taxi inaugural arsenic a testing crushed for broader applications of telematic-driven underwriting. Hui said nan information generated done nan programme could yet shape portion of insurers’ underwriting considerations arsenic usage-based products expand.

“Customers are progressively looking for a much usage-based security cover,” Lee said, adding that nan exemplary could beryllium extended to different fleet-based segments, peculiarly arsenic caller regulations style Hong Kong’s ride-hailing industry.

Future phases whitethorn see links to integer commerce platforms and electrical conveyance charging networks, aligning nan programme pinch longer-term trends successful electrification and smart mobility.

For Zurich, nan taxi assemblage carries broader economical significance. “Hong Kong’s taxis are nan heartbeat of nan city,” Hui said. “Using AI and smart telematics allows america to safeguard livelihoods while contributing to a much sustainable and resilient carrier ecosystem.”
 

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