Toyota Motor is collaborating with Aioi Nissay Dowa Insurance on an American joint venture in April to create and promote an insurance product that is curiously based on the driver’s habits.
The two Japanese companies hope to utilize the trend of big-data analysis to “devise new insurance as early as next year.” Motorists’ habits such as braking and acceleration could be monitored using sensors built into the vehicle, an article on the Nikkei Asian Review said.
Aioi Nissay will take a 50% stake in the joint venture, with Toyota Financial Services taking 45%, and Toyota Motor the remaining 5%. Microsoft, with whom Toyota cooperates with on big-data utilization, will provide engineers to lend a hand in analyzing the data and other technical work.
The venture is expected to take off by May next year, with “telematics insurance products” for the American market rolling out within a few years.
American insurers will be able to benefit from Toyota and Aioi Nissay’s collaboration. For a fee roughly around 8% of premiums, insurers will be provided model insurance plans and knowledge of how to calculate premiums based on the data collected from the driver.
Last April, Aioi Nissay acquired a British auto insurer familiar with telematics insurance. The company even offered discounts on its insurance premiums on Toyota cars with the new navigation systems.
