Staring from 2012, UBI in China lags behind that in foreign countries. Hence, domestic UBI products are operated with reference to some foreign mature models. Various Chinese parties are actively promoting the development of UBI for now.
OEMs + Insurers
OEMs usually cooperate with third parties and insurers in UBI field, represented by SAIC Motor + Cihon + CPIC. SAIC Motor and CPIC give a personalized quota for car insurance on auto models carrying OnStar according to consumers’ driving habits, mileage, and other factors. Cihon is responsible for data analysis and insurance model development.
Telematics Platforms or Parts Manufacturers + Insurers
Telematics platforms are dominated by AM TSP in UBI field. For example, the insurer (PICC), via Shenzhen Autonet’s Telematics platform, provides car owners with one-key insurance claim, quick settlement of claim, and inquiry of insurance status, and develops floating car insurance business. Parts manufacturers launch their own AM hardware or set up UBI-related companies. For instance, Deren Electronic, on the one hand, teams up with ATzuche to release its own OBD, and on the other hand, acquires Telematics-related companies and set up Dedao TSP with CPIC.
Independent Service Providers + Insurers
Independent service providers usually acquire customer data via APP + OBD to work with insurers to develop UBI and at the same time provide customers with preferential services with regard to maintenance and other aspects.
Big Data + Insurers
In UBI field, some insurers, on the one hand, have self-operated platforms, such as Zhong An Online P&C Insurance’s O2O car insurance, and on the other hand, co-develop platforms with Internet businesses or other Telematics firms. For example, CPIC organized Internet companies with Baidu and invested in Atzuche. Big data enterprises employs various methods in UBI field, like Jingyou, a provider of database and risk models.
Chinese UBI market will grow rapidly propelled by the aforementioned parties, reflected in not only iterative acceleration in market size but also more diversified service mechanisms. For example, insurers will provide not only price discounts but also other services like emergency rescue, remote diagnosis, maintenance reservation, and weather & traffic conditions; with development of mobile phone hardware and the popularity of 4G network, mobile APP-based UBI will burgeon; driving habits and mileage will not be the only criteria for privileges, and age, gender, and devices installed on the vehicle will be taken into account when the discount is calculated.