Toyota plans driving-based insurance in Japan

Toyota Motor Corporation, along with MS&AD Insurance Group’s Aioi Nissay Dowa Insurance, has jointly developed Japan’s first driving behaviour-based telematics automobile insurance.

The new insurance by Toyota is available to owners of certain units of Toyota connected cars that will use driving data gathered via telematics technologies for adjusting the insurance premium based on the level of safe driving habits of the user every month. The insurance premium will consist of a combination of the 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 behaviour discounts, other services will be provided under the concepts of ‘enjoyment’, ‘benefits’, and ‘safeguards’. The new service will go on sale from January 15, 2018, while insurance liability is scheduled to commence in April 2018.

According to Toyota and Aioi Nissay Dowa Insurance the intention is to contribute towards the realisation of a safe and secure traffic environment through the development and provision of telematics automobile insurance that utilises connected cars and automobile big data.

Development background
Advancement in telematics technologies  has led to major changes in the automobile landscape, such as the creation of a variety of new products and services that utilise automobile driving data. In Europe and the USA, there has been an increase in the number of automobile insurance policies that utilise telematics technologies to provide discounted insurance premiums based on levels of safe driving. In Japan, the government is advocating the use of automobile insurance that leverages telematics technologies as a means of reducing the number of accidents. Consequently, automakers and IT companies are engaged in lively competition for technological development.

Recently, Toyota declared the three pillars of its connected strategy: connecting all cars; the creation of new value and business revolution; and the creation of new mobility services. Through the development of connected cars, that are equipped with data communication modules (DCM), which are required for transmitting data, it provides connected services that utilise big data.

This has enabled the company to engage in the creation of new value for a mobility society and, at the same time, it aims to realise the ultimate goal of eliminating traffic fatalities and injuries. For this, the company promotes the development of advanced safety technologies such as Toyota Safety Sense and ICS, and has increased the number of models equipped with these technologies along with working together with dealers, commencing Support Toyota programs―educational traffic safety activities aimed at enhancing customer safety and peace of mind.

In the initial phase the company’s new insurance scheme will see Toyota’s connected cars (including Lexus vehicles) and the line-up will be gradually expanded starting with the Crown (scheduled for launch in April-May,2018) and all new models that will be sold from January 2018 onwards are eligible (excluding the HS and LC; certain existing models are also eligible).

How it works?
The connected cars will automatically transmit a variety of car-related data via a DCM to the Toyota Smart Center. Utilising this vehicle driving data, Aioi Nissay Dowa Insurance will provide a new service that will be unique to Toyota vehicles. 

Apart from utilising data for determining the policy premium, the data will also generate a drive report that will help vehicle users for getting – tips that can be checked after every drive, 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. This report will enable drivers to verify both the route taken and locations where dangerous driving was detected and provide them simple tips on each aspect of driving.

Apart from driving-behaviour, vehicular information alerts will also be provided that include –the operational state of active safety devices, tire pressure, electronic key charge status, among other items.

Depending on the monthly report, a detailed evaluation will enable drivers to review their monthly driving results, along with safe driving score and insurance premiums and discounts will be determined based on the driver's safe driving score.

Additional features as part of the new scheme will incorporate – real-time support during emergency situations, automatic emergency report service, previously, when customers were involved in an accident, they had to call their insurance company themselves. However, under this plan, if a large collision is detected, staff at a specialised Automatic Report Desk will place a 'safety confirmation phone call' and make any necessary arrangements in a speedy manner to reduce the burden on the customer.

Also, customers can opt not to receive safety confirmation phone calls, in which case Aioi Nissay Dowa Insurance will then 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.