for an Evolution of Claims Transparency, Efficiency, and Reliability in Internet of Vehicle (IOV)
BiiLabs Co., Ltd. and TransIOT today announced their joint venture project to boost the blockchain/ distributed ledger technology (DLT) usage-based insurance (UBI), also known as the pay-as-you-drive (PAYD) insurance or pay-how-you-drive. The venture leverages TransIOT’s expertise in vehicle telematics and BiiLabs’ DLT to create a win-win product that can be deployed in the private or commercial sector.
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It is expected that by the end of 2019, up to 79 million cars will be sold for private or commercial use. An expertise in IoT telematics, TransIOT’s solution utilizes the vehicle’s onboard diagnostics (OBD-II) to acquire various vehicle data. The volume of data from vehicles can serve as the foundation to various other automotive-related applications. Ensuring the authenticity and security of the data is where BiiLabs distributed ledger technology (DLT) comes in. It encodes the acquired data and stores them on Tangle, a peer-to-peer distributed (decentralized) database. This makes the data extremely safe or impossible to tamper and the Blockchain-DLT UBI contracts offer other benefits such as claim process automation; reliable and transparent payout mechanism and enforcement of contract-specific rules.
Keanu Lin, CEO of TransIOT said, “Traditional vehicle insurance could soon be a thing of the past with their lengthy process of quotes and detail coverage going back and forth. It is time-consuming for the insurance company and vehicle owners. And more often than not, it is right up until an accident claim has been made where drivers find out the insurance they purchased did not cover the accident they are involved in. This is also when insurance companies often find themselves at the receiving end of complaints.”
Lman Chu, Cofounder and CEO of BiiLabs indicated, “With blockchain-DLT UBI, your insurance premium is dictated by the how safe (or how aggressive) you drive. In addition to the benefits mentioned above, UBI is all about encouraging safe driving habits. The acquire data through the vehicle’s OBD-II can be analyzed for how gentle or aggressive one accelerates or brakes or how fast or slow one drives. Simply put, the safer you drive, lesser the premium you pay.”
From a commercial point of view, the Blockchain-DLT UBI acquired data provides transparency and prevents insurance fraud. Such as in the event of an insurance claim, the automated process will only be paid if the vehicle is repaired with a designated repairer certified by the insurance company. The transparency and credibility of the process is of benefit for both the vehicle owner and the insurer.
The joint venture aims to offer a product with insurance premium reduction for safe driving vehicle owners and an almost immediate return on investment for insurers. By encouraging safe driving habits, safe drivers will see lower premium rates and vice versa, safe driving leads to less accidents and will in turn reduce repair costs for insurers. In addition, it prevents insurance claim fraud by offering reliable and transparent automated claims pay out.
TransIOT solution which is supported by BiiLabs is available in two variants, an embedded solution that can be preinstalled by the automotive manufacturers (AUTO OEM) or an OBD-II port dongle device that can be added at a later stage.