Muang Thai Insurance Plc (MTI) will use its customers' driving behaviour data tracked on its new mobile application to determine car insurance premiums, starting from the third quarter of 2018.
A new insurance product that will be based on the data is being tested out now in the Office of the Insurance Commission's (OIC) regulatory sandbox.
"As digital technology becomes more integrated into our life, it is important for insurance companies like us to embrace it to improve our products and services," said Nualphan Lamsam, president and chief executive.
The company yesterday introduced the new mobile app for road safety, Muang Thai iDrive, which will be used to monitor and recommend safer driving behaviour.
Mrs Nualphan said the app has been successful in experiments in the OIC's regulatory sandbox and is ready for use by its customers.
She said in the initial stage the app will be available to only first-class motor insurance customers.
The app is expected to be used by around 2,000 customers in the first three months.
Wasit Lamsam, MTI senior executive vice-president, said information on customers' driving behaviour monitored by the app will be used to launch the new insurance product. Premiums will be based on each customer's risk associated with their driving behaviour.
"As a result, customers who have less risky behaviour will pay a lower premium while those who have been riskier will be subject to a higher premium," said Mr Wasit.
Most motor insurance companies offer the same premium for all customers, making those with low risks pay highers premium than they should.
Mr Wasit said the new product, which is now being tested out in the sandbox, will be offered in the third quarter of next year.
The company aims to use this product to attract customers with low risks to help improve its portfolio. Motor insurance accounts for around a half of its portfolio.
For the first 10 months of this year, MTI posted 8 billion baht in gross premiums, of which 6 billion came from motor insurance. The insurer expects 12 billion baht in gross premiums this year with no growth from last year.
"The motor insurance market is highly competitive, so higher market share is not our main goal this year. We are focusing on restructuring our portfolio," said Mr Wasit.
