Toyota and MS&AD Insurance Group develop driving behavior-based telematics automobile insurance
Toyota Motor Corp. and the MS&AD Insurance Group's Aioi Nissay Dowa Insurance Co., Ltd. have jointly developed what they say is Japan's first driving behavior-based telematics automobile insurance. The plan is available to owners of certain units of Toyota connected cars, and it 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% 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.
Through Toyota dealers, the insurance is Toyota "Tsunagaru" (Connected) Car Insurance Plan. Through Lexus dealers, it is known as G-Link automobile insurance. Eligible vehicles will be 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. Using this vehicle driving data, Aioi Nissay Dowa Insurance will provide a new service that is unique to Toyota vehicles.
By providing a service that makes use of telematics technologies, Aioi Nissay Dowa Insurance aims to generate added value (active safety) for customers whose actions have not caused traffic accidents. The company provides each customer with a safe driving diagnosis service in a timely manner in order to encourage safe driving and prevent traffic accidents from occurring.
A drive report contains tips that can be checked after every drive. It will include:
- Safe driving score and tips. After each drive, the driver's speed, acceleration, and braking are evaluated on a five-point scale. A combined safe driving score out of 100 is also provided.
- Drive report map. The report map enables drivers to verify both the route taken and locations where dangerous driving was detected, and it provides simple tips on each aspect of the user's driving. This feature enables drivers to review their drives immediately after they have finished.
- Vehicle information alerts. These alerts provide information on the operational state of active safety devices, tire pressure, electronic key charge status, among other items. The feature helps keep the car in a safe and secure state.
A monthly report will provide a detailed evaluation that enables drivers to review their monthly driving results. It will include the safe driving score, upon which insurance premium discounts are determined. Safe driving advice with detailed feedback is provided based on the previous month's driving data.
Newly established discounts are based on driving characteristics. The discounts are deducted from insurance premiums according to monthly driving distance and driving characteristics (with negatives including excessive speed, sudden acceleration, and sudden braking incorporated). This information is based on driving data gathered via Toyota's connected cars.
Real-time support is provided during emergency situations, with an automatic emergency report service. Under the plan, if a large collision is detected, staff at a specialized Automatic Report Desk place a "safety confirmation phone call" and make any necessary arrangements quickly to reduce the burden on the customer. Customers can opt not to receive safety confirmation phone calls, in which case Aioi Nissay Dowa Insurance will send emergency contact information by email. When directly contacted by the customer, the company will make emergency tow truck arrangements, accident reports, and rental car arrangements as necessary.
The safe driving score, evaluation of driving characteristics, and safe driving advice can be provided in the form of a monthly report sent by email to families worried about children who have recently acquired driver's licenses, parents living far away, or other parties. This enables family members to monitor the customer's driving habits and allows the service to be used in activities aimed at safe driving. In the event of an accident, the results of the initial response to the accident, such as details of the accident and whether there were any injuries, are sent by email.
Customers will be notified of their national ranking in terms of their safe driving score, as well as their ranking among drivers of the same car model, age, and prefecture. A Safe Driving Campaign will also be implemented, and customers who achieve score and ranking thresholds will be given prizes.