FWD General Insurance Company Limited
Contact person: See Fong Ting Angela
Email address: firstname.lastname@example.org
Contact number: 2850-2221
The Digital Insurer Asian Insurance Innovation Award
In the insurance market, it is commonly understood that people with higher risks will have to pay higher premiums. However, this does not always happen in motor insurance market. Supposing there are 2 drivers with similar demographicss, driving the same type of cars, it is likely that their motor insurance premiums will be the same. Conventionally insurers incentivize customers with a no claims discount (NCD), which is given upon policy renewal providing the policyowner has made no claims over a certain period of time. Yet some drivers can be protective of their NCD and do not make a claim in the event of an accident. For this reason, an NCD does not truly reflect a driver’s risk profile. Nevertheless, this is how traditional motor insurance does business. As driving behavior is never truly evaluated or considered, the safer driver is in fact subsidizing the reckless one.
As a pioneer in InsurTech, FWD believes that modern technologies enable us to rectify this unfair situation. We aspire to break the NCD norm, by truly encouraging people to drive safely and rewarding them with cash rebate on renewal. By introducing telematics (i.e. the integrated use of telecommunication and information technology for vehicles) into Hong Kong, we can now quantitatively evaluate drivers’ skills and in turn offer incentives to good drivers. This coincides with the concept of Usage Based Insurance (UBI) that is potentially capable of disrupting the traditional motor insurance market.
The first telematics app in HK
FWD Drivamatics is the first ever mobile app in Hong Kong that truly integrates driving behavior and the use of mobile technology to evaluate how safe you drive. In all, it is designed to be simple, smart, sociable. Supported by our motor insurance product - the MotorSmart Insurance, Drivamatics carries 3 key features as its foundation for success: Score, Share and Save.
The system tracks over 40 driving attributes, including speeding, sudden acceleration, hard braking, sharp turn and using phone when driving, in order to issue driving scores. Immediate feedback on one’s driving behavior and performance is given after each trip so that drivers can learn and improve their driving skills.
Social element is built in to make it fun and easy for users to add friends, view their scores and ranking and share the results with their friends.
Users can enjoy an exclusive privilege of up to 30% cash rebate on top of the No Claim Discount (NCD) if they also purchase FWD MotorSmart Insurance. By seeing their driving score, users will know how much cash rebate they will receive. The reimbursement scheme is simple and transparent, and also tangibly encouraging safer driving.
Being the first mover to introducing vehicle telematics into the market, FWD did not take reference from any similar app in Hong Kong. We worked out solutions to overcome issues and problems through the development process, the design of user interface and experience that are completely new and original in the market.
The backend scoring system is based on the patented big data processing algorithm and drivers’ behavior modeling owned by our app development partner and leased exclusively to us.
Strategic impact on the market
Without any existing technology to base or refer from in Hong Kong, the launch of FWD Drivamatics has become the foundation and role model for vehicle telematics. We have set up the new disruptive business model and industry standard. And we have taken the leading role in pioneering InsurTech in Hong Kong.
Motor insurance has never been so lively and fun. Through FWD Drivamatics, we truly deliver our bold corporate commitment – “To change the way how people feel about insurance”. For society as a whole, our vision is to bring every driver in Hong Kong a truly pleasurable and safe driving experience. With its patented technology, Drivamatics is able to accurately identify drivers’ driving signature and score their driving behavior and doing so will reduce instances of distracted driving and other risky behavior. This can be seen from the 6.4% improvement in the overall driving scores since launch and we expect to see a steady improvement over the coming year.
App Penetration: As of 23 June 2017, total number of downloads reached 9,155. In other words, 180% of the first year KPI has already been achieved in just 8 months.
Brand Innovation: As of April 2017, FWD brand perception in being innovative reached 37%, taking the lead with a 13% margin over the competitors (source: FWD brand tracker, Cluster). FWD has been regarded as a leading and most innovative brand in Hong Kong since Drivamatics was launched in October, 2016.
Future development and the Impact on the industry
1. Enable marketing opportunities: Since the launch of FWD Drivamatics, a new set of big data has emerged, such as how well people drive; how long they drive; where to they drive to, etc. This data provide insights into drivers’ lifestyle and allow us to tailor-make promotions for them.
2. Future app features enhancement: The scoring function and cash rebate scheme are just the starting point of the app. As a truly handy driver’s assistant app, a numerous features could be added to FWD Drivamatics. For instance, based on the records tracked through driving, valuable information is provided to help streamline the claims process. Users can simply take photos of the car crash and submit the claim via the app - it’s that simple and convenient.
3. Deliver on the promise of an innovative brand: FWD Drivamatics has received numerous renowned industry awards during the first half year since launch, including the Best FinTech Grand Award in HKICT Awards 2017 from the HKSAR Government and the Hong Kong Institute of Bankers; and the Gold Awards in Best App – Finance in Mob-Ex Awards 2017 from Marketing Magazine. These are remarkable recognitions affirming the leadership role of FWD in InsurTech development.
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