Home / Insurance Telematics / Toyota and Aioi Nissay Dowa Insurance jointly bring telematics insurance product

Toyota and Aioi Nissay Dowa Insurance jointly bring telematics insurance product

Toyota and Aioi Nissay Dowa Insurance have jointly developed Japan’s first driving behavior-based telematics automobile insurance. The plan is available to owners of certain units of Toyota connected cars and uses driving data gathered via telematics technologies to adjust insurance premiums based on the level of safe driving every month.

Total insurance premiums comprise a combination of basic insurance premiums and usage-based insurance and, under this new plan up to 80 percent of usage-based insurance premiums can be discounted. In addition to driving behavior discounts, various services are to be provided under the concepts of “enjoyment,” “benefits,” and “safeguards.” The service is scheduled to go on sale on January 15, 2018, while insurance liability is scheduled to commence in April 2018.

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Toyota and Aioi Nissay Dowa Insurance jointly bring telematics insurance product

The insurance plan is available for Toyota connected cars (including Lexus vehicles) from which Toyota can gather self-determined driving data. Toyota’s connected cars automatically transmit a variety of car-related data via a DCM to the Toyota Smart Center. Utilizing this vehicle driving data, Aioi Nissay Dowa Insurance will provide a new service that is unique to Toyota vehicles.

The business model based on collaboration between OEM and insurance company is being proposed for a long time and if this business model is successful it might be replicated by other players as well.

About Piyush Rajan

Asst. Editor |Telematics Wire | Smart automotive

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