Major motoring firm to make auto insurance bow

A major international car manufacturer is to team up with Microsoft and a global insurer to launch a UBI insurance product

Insurance News

By

Jordan Lynn

Toyota is set to team up with Microsoft and global insurance company Aioi Nissay to launch a usage based insurance product in the United States.

The three companies will come together in a joint-venture which will see them use their expertise to launch in the ever-expanding market, according to Nikkei Asian Review.

Aioi Nissay, a unit of international insurance group MS&AD, will take a 50% stake in the business with Toyota taking 45% and Microsoft the remaining 5% as the business looks to launch by May 2017.

According to Nikkei Asian Review, the JV will aim for approximately 450 ,000 policies by 2020 and an insurance income of $55 million as insurers across America will be offered model insurance plans and pricing data for an 8% fee.

The rumoured insurance business follows closer ties between Toyota and Microsoft as the two businesses will work together on connected cars.

Toyota announced this week that they will launch Toyota Connected to serve as a data hub for the business and Microsoft will provide cloud solutions for the enterprise.

 “We’ve all been talking about big data for a long time, but we are at a unique point in history where the technology is catching up with what we hope to achieve by delivering new services and capabilities into the vehicle,” said Zack Hicks, president and chief executive officer of Toyota Connected.

“We’ll be able to bring you services that make your life easier, and push the technology into the background and give you those things you really want, which isn’t a blaring screen, it’s really letting people know that you’re running late for a meeting.”

Kurt DelBene, Microsoft’s executive vice president of corporate strategy and planning, said that the two businesses will work closely on the future of the automotive industry.

“The automotive industry is undergoing a massive transformation as drivers increasingly see their cars as mobile devices that extend their digital lifestyle,” DelBene said.

“That means people now care as much about their car’s computing power as its horsepower. So we’re working closely with carmakers, including this deep partnership with Toyota, to make automobiles more intelligent with sensors, screens, connectivity and vast networks of data that will help improve the whole driving experience.”

Other manufacturers have already openly discussed insuring their own cars, this may be a worrying trend to watch for carriers in this space
 

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