Research On The Construction Of The UBI Insurance System In China

This paper discusses the construction of the UBI insurance system in China from four aspects.Firstly,the paper analyzes the theory and practice of UBI insurance.As an insurance innovation in the era of Internet of Vehicles,UBI insurance,based on big data analysis,can fully reflect the safety of drivers' driving behavior and set personalized premium rate standards for each car based on the driving behavior scoring mechanism.This is a change to the existing auto insurance pricing model.And it can help drivers correct unsafe driving behaviors through OBD devices and reduce accident probability.At the same time,UBI insurance is an optimization of the insurance system,a concept that is in line with the principles of good faith and equilibrium.Furthermore,UBI embodies a green philosophy and encourages drivers and people to adopt a low-carbon lifestyle.In terms of extraterritorial practice,the article provides an analysis of institutions and practices in the United States,where UBI insurance products were first developed,and makes a brief description of product models in Italy,the United Kingdom and Japan.The second part is an analysis of the demand for UBI insurance in China's auto insurance industry.In the new market environment,China's auto insurance industry has prominent old and new problems.For example,the high incidence of traffic accidents,poor consumer awareness of risk management,insurance fraud is difficult to eliminate,insurance companies can not improve the quality of service,etc.The persistence of these problems is a bottleneck in the development of China's commercial auto insurance market.UBI can also help solve insurance challenges in the current business model of "Ride-sharing" and "Ride-hailing".More importantly,the use of insurance technology such as artificial intelligence will help break the bottlenecks in the development of the industry,and some of the achievements in thenew industry and new technology will provide great innovation space and reform momentum for the development of China's insurance industry.In the future,with the further upgrading of artificial intelligence and machine learning capabilities,driverless cars will replace some of the manned cars,and the "human factor" in UBI premium rate setting will face significant challenges in the era of driverless cars,the development of car insurance products need to be mindful of such new industry models and enhance the insurance industry's risk management capabilities.The third part is an analysis of the legal issues underlying UBI's insurance.This includes the subjects inherent in traditional vehicle insurance contracts,the new data operating subjects in UBI insurance contracts,the special rights and obligations of various subjects,and also the special legal issues regarding the transfer of the subject matter of UBI insurance.The article focuses on the relationship between the insured party's right to information and the insurance service provider's data operation legality obligation,the limitation of the insured party's right of autonomous choice and the right of arbitrary cancellation of contract,the relationship between the insured party's right to fair trade and the insurer's obligation of reasonable pricing,and the analysis of the insurance service provider's data rights and the insured party's honest credit obligation.The paper argues that UBI insurance cannot be divorced from the basic logic of the insurance system.In the legal relationship of UBI insurance,the insured,the insurer,the user of the vehicle,the data controller,the data processor,and other subjects should reorganize their rights,obligations and responsibilities.Compared to traditional vehicle insurance,UBI insurance has multiple layers of legal relationships.With data-related obligations,insurers should establish good data cooperation mechanisms with data processors to maintain data security.During the use of the vehicle,the performance of the insured's duty of good faith directly affects the stability of the UBI insurance contract,so the insured should be subject to certain limitations of rights.In addition,the most controversial aspect of UBI insurance as a "technology-based insurance" is the protection of special user information,and the paper briefly reviews the experience of extraterritorial information data protection systems.The fourth part is an analysis of the basic conditions for the design of UBI insurance products in China,and makes targeted recommendations based on the legal issues highlighted in this article.As a technology-oriented insurance product,the introduction of UBI insurance requires not only the development of relevant technology,but also the careful use of technology.At the technical level,UBI insurance is primarily concerned with the collection,transmission and analysis of driving data.Currently,the technology of the Internet of Vehicles is advancing rapidly,and the use of insurance technology will make big data collection and analysispossible.National standards and industry standards are also being developed for the standardization of data collection for the Internet of Vehicles.In terms of business model,the car insurance industry is constantly innovating,but has not yet formed a complete industry chain.The development of UBI insurance products in China is imperative based on the foundation of China's vehicle networking technology,data protection system and financial regulatory policies,as well as the new industry's promotion of reform and innovation in the insurance industry.Through the above research,this paper makes the following recommendations.Firstly,it is important to clarify the area of application of the UBI insurance concept,UBI is an advanced pricing concept,in theory,China's motor vehicle mandatory liability insurance and commercial car insurance can be applied.Secondly,in improving the information data protection system,the existing decentralized information protection system should be integrated by taking the opportunity of our Personal Information Protection Law.Improving the data rights redress mechanism,drawing on extraterritorial legislative experience and balancing the relationship between data rights and industrial development.Thirdly,the obligations and responsibilities of data processors and data controllers should be clarified in terms of improving the internal protection mechanisms for data from the Internet of Vehicles.In the data application process of UBI Insurance,user information needs to be sensitively measured and graded,and the whole process of data protection is emphasized.Finally,the whole process of regulation of UBI products should be improved,including the regulation of product pricing and driving behavior evaluation mechanism,and it is recommended that industry associations,insurance companies and other relevant subjects jointly establish a data analysis platform for the Internet of vehicles.Use this platform as an infrastructure for the industry to establish standards for the analysis and evaluation of data from the Internet of Vehicles.A uniform driving behaviour scoring model could also be developed to form a national reference to the applicable UBI insurance rates.In addition,industry mutual recognition of driving behaviour data should be promoted to prevent moral hazard.It is recommended that model terms for UBI insurance products be developed.In UBI insurance,the insured party has substantial pricing power,which may create more moral hazard,and the business risk of the insurance service provider is highlighted,so the insurance contract terms should be refined and designed to balance the right protection mechanism for both parties.At the same time,the formulation of a well-developed model clause for UBI insurance is conducive to distinguishing it from "Illegal UBI insurance".This is conducive to the establishment of a regulated legalrelationship for UBI insurance.It is proposed to improve the mechanism for the protection of the rights of insurance consumers in the "sandbox".When designing UBI insurance products in China,if a "sandbox" testing mechanism is adopted,Insurance consumers should be fully informed of their rights and of the various risks that may arise.Insurance service providers should be required to develop a sound testing programme.Supervisory authorities should enhance science in the design of model clauses for insurance contracts and the formulation of regulatory rules,and supervise insurance enterprises' compliance with legal obligations.