Innovative UBI Auto Insurance Based On Mobile Internet Technology

In property insurance companies, auto insurance premiums accounted for more than 70%. But due to the insurance premium is unreasonable, it makes the insurance company's underwriting profit ratio continue to fall, even facing the industry-wide underwriting losses.In order to make the Insurance company can accurately estimate the risk of different vehicles, there is a new type of auto insurance model, Usage Based Insurance (UBI) was proposed in the Unites States in the last century. The core idea of this insurance is based on the usage of vehicle, and assess the risk of each vehicle with big data analysis, to make accurate insurance price. This emerging form of auto insurance can effectively solve the problem of precision pricing, has been recognized by the industry as the future development of auto insurance trends.UBI introduces the risk factor which related to the usage and driving behavior, by the OBD equipment. According to the usage of the vehicle, and the risk level of the driver's driving skills on each vehicle, UBI is able to make more accurate decision, more efficient than the traditional auto insurance projects. At present, some insurance companies in the world have started the exploration and application of UBI. The most notable one is the risk varies of the external environmental factors are not taking into account in UBI. With the development of Internet technology, big data, cloud computing and other disciplines, it is possible to further improve UBI. In this work, based on the current UBI mode, we take extra risk factors, weather conditions, road conditions, driving route, and the illegal driving behavior, into consideration. Furthermore, we add a couple more new services, active defense, emergency rescue, and social function. In order to increase the acceptance level of the users, we adjust the original annually charged premiums to the usage based and risk factor related charging way.The most important issue in UBI is how to collect these private data such as customers'driving behavior, and driving routes. In some countries which has provided UBI insurance,some customers do not want to use UBI because they are not willing to provide these data to such insurance companies. For this issue, I have designed a questionnaire. And based on the feedback of this questionnaire,we see that there are only a small percentage of customers who is . As long as the premium discount rate can achieve customers,expectations, the majority of customers is willing to use UBI insurance. Finally, this paper finds out that some domestic insurance companies have enough inherent motivation to develop UBI insurance. And with the expected domestic commercial auto insurance reform and policy liberalization, UBI auto insurance will have broad prospects in China.