Carro launches AI-driven UBI in Singapore
Carro, the Singapore-based automotive marketplace, has launched its own pay-per-kilometer insurance plan for the country's drivers.
AI, usage-based-insurance for Singapore’s drivers
The platform, which uses artificial intelligence (AI) technology to track driver distances and monitor vehicle maintenance, is, claims Carro, the first product of its kind to be available in the APAC island nation-state.
The coverage enables drivers of all cars (both fuel and electric) to “tailor their insurance premiums and maintenance coverage according to their lifestyles,” said a statement released by Carro.
Carro’s telematics solution
The foray into the insurtech market has seen Carro create and launch a product that requires digital signup. Once registered, users are sent the Carro telematics on-board device along with an installation guide.
Data generated and monitored by the telematics box is managed by the Singapore-based technology company, Quantum Inventions.
Upon installation, the box can monitor and track the data required to calculate the UBI cover costs and car maintenance premiums.
Speaking about the new insurance product, Aaron Tan, founder and chief executive officer of Carro, explained, “Digitalisation has turned the auto industry into a whole new ball game. As one of the first to embrace it through our investments into digital technologies, Carro has been able to provide new generations of car owners a single touchpoint to resolve their car concerns through AI-driven, end-to-end services – including user-based insurance (UBI).”
Tan added that Carro’s existing UBI offerings have been received with great success. “We are excited to take this digital transformation one step closer with Covered. Having the convenience of UBI and maintenance in one neat, personalised package helps drivers save more on both sides and further streamlines the management of car ownership."
Benefits of UBI for motorists
- 1) Usage-based insurance can offer cheaper premiums to drivers that don't take their vehicles over a certain amount of mileage
- 2) Telematics technology monitors the health of the vehicle and informed the driver and the insurance company regarding the safety and upkeep of the car
- 3) UBI policies also commonly offer accident services, where highway rescue services are dispatched and on-the-spot claims can be made at the roadside.
- 4) Some studies show that UBI cover can improve driver safety awareness as the telematics monitor driving speeds and road conditions as well as driver responses.
Image credit: Carro
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.