: Usage-based Insurance (UBI) is a platform that is no longer foreign in this "Internet of Things" (IoT) world.
However, not many in Malaysia are familiar with this mechanism to give value to vehicle insurance, which helps to create safer roads and save more lives.
UBI will allow insurance companies to acquire driving behavior data which then will help them curate better insurance programmes.
Today, three insurance companies Allianz Malaysia Bhd, Etiqa Insurance Bhd and Etiqa Takaful Bhd have paved its way to boost adoption of UBI in Malaysia.
The three insurers signed a Memoranda of Understanding (MoU) with a local start-up, Pixelated Sdn Bhd (KATSANA) which will allow insurers to develop UBI products for their customers.
In addition, the parties involved will work together with KATSANA to improve its newly launched DriveMark telematics app as means to collect driving behavior data.
KATSANA managing director and co-founder, Syed Ahmad Fuqaha Syed Agil, said the collaboration is important for all parties involved as it helps to promote a progressive and transparent UBI approach.
"We work together to analyse the data, to understand what's the actual risk of drivers in Malaysia.
"And we use this data to help them become safer drivers on the road and offer them rewards for good behaviour.
"We hope this is going to be a social movement where KATSANA and drivemark, together with our insurance partner in Axiata become the catalyst for safer driving in Malaysia," he said.