Driving Patterns to Determine Insurance Premiums | Be Korea-savvy

Driving Patterns to Determine Insurance Premiums

(image: Pixabay)

(image: Pixabay)

SEOUL, Apr. 29 (Korea Bizwire) – New types of car insurance plans which determine premiums based on driving patterns and trip information are being developed.

Hyundai Marine & Fire Insurance (HI) has developed a new product called ‘Hi-Car BlueLink/UVO Insurance Plan’, which will be available mid-May.

Hyundai’s BlueLink and Kia’s UVO telematics systems will collect vehicles’ navigation information and trigger an emergency response when accidents occur. The systems also automatically inform the insurance company of accidents and help to register information, all of which in turn will help reduce insurance fees.

Drivers who don’t travel much are eligible for a ‘mileage discount’, and can receive savings of up to 15 percent discount if they travel less than 10,000km.

Other insurers are also offering plans that make use of advanced technology.

Dongbu Insurance, in collaboration with SK Telecommunications (SKT), is planning to launch ‘UBI Car Insurance’, with UBI standing for Usage-based Insurance. Dongbu will use SKT’s T-Map navigational application to collect information about driving patterns and use the data to calculate insurance premiums. 

Heungkuk Fire & Marine Insurance and Meritz Fire & Marine Insurance, together with KT, are also working to develop new UBI insurance plans. The plans will include the installation of an additional OBD (On-board diagnostics) system to analyze driving patterns.

“We are seeing more insurance products that make use of advanced technology. We expect to see more technological applications in the insurance industry,” said an official.

By Kevin Lee (kevinlee@koreabizwire.com)

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