Leading mobile operator Advanced Info Service (AIS) has partnered with MSIG Insurance to launch "Prakan Kubdee" motor insurance, gauging motorists' driving behaviour using an Internet of Things (IoT) device attached to their vehicles for premium calculation.
This project is the first under the Office of the Insurance Commission's (OIC) regulatory sandbox.
"The product is part of AIS Insurance Service, which serves as a digital insurance broker," said Alistair David Johnston, managing director for new business at AIS.
"AIS leverages its core strengths of high-quality fixed and mobile networks as well as our digital platforms to deliver innovative new insurance products."
Customers' driving behaviour is gauged by MSIG car informatics equipment, which is an IoT device embedded in their vehicles. The device was jointly developed by AIS.
The data will be sent through the AIS network to MSIG's cloud-based system for processing.
Customers can proceed with their premium payments through the AIS digital payment gateway system, or MPay One.
"This is truly an innovative insurtech prototype," said Mr Johnston said.
Rattapol Gitisakchaiyakul, chief executive of MSIG Insurance Thailand, said the pandemic encouraged insurance businesses to seek solutions which are consistent with consumer behaviour in the new normal.
The idea of Prakan Kubdee products came to light during the lockdown when people had to change their lifestyle and work patterns.
Car usage declined as people worked from home and this prodded the firm into developing a new motor insurance plan with reasonable premiums, which simply calculates from real driving behaviour, he said.
The service needs MSIG car informatics equipment and a SIM card, which would cover motorists' driving behaviour as much as possible in Thailand.
The equipment will gauge five factors: distance, speed, journey time, time of the day driven and areas driven.
Prakan Kubdee has a basic annual premium, with Class 1 Insurance starting at 6,499 baht, and Class 2+ at 3,299 baht, for all coverage and every model of vehicle.
From there, insurance premiums are calculated from driving, with premiums calculated daily depending on the five factors.
"We consolidate the daily premiums to charge a monthly premium, and premiums can be checked from the Prakan Kubdee app," Mr Rattapol said.
Suttipol Taweechaikarn, secretary-general of the OIC, said his agency's key role is to support insurance businesses to employ innovation and technology for their operations.
The OIC is also promoting Thailand as an insurtech hub, which is in line with the agency's insurance development plan.
The organisation approved Prakan Kubdee to participate in its insurance regulatory sandbox, he said.
According to Mr Suttipol, the product benefits customers because it is flexible and bases insurance premiums on real driving behaviour.
This insurance should also help bring about better driving discipline, he said.
