18/7/2018 – Vouch Insurtech, an insurance platform based in Singapore is partnering with six leading Thai insurers to jointly launch FairDee, a digital insurance platform set to transform the Thai automotive insurance industry.
“Motor insurance premiums are expensive in Thailand, relative to the region, and there are few measures to prevent fraudulent claims or encourage safer driving,” explained Vouch Insurtech co-founder and county manager Thanasak Hoontrakul.
“The high rate of road accidents in Thailand resulted in a high claim frequency as much as 65% of total policies,” he added.
As a result, these are pain points for both customers, especially those who are safe drivers and do not file claims, as well as insurance firms whose claim expenses are highly eroding their profitability.
This makes up FairDee’s business model as the company aims to encourage safe driving and influence positive changes in the claims behavior among Thailand customers which are used to filing as many claims as possible.
To achieve that, FairDee takes up the business model where it will reward customers by giving up to 30% on annual premiums back to consumers who did not make any claims within that policy year.
According to FairDee’s own market research, safe drivers are penalized when premiums increase as insurers seek to cover the risks of unsafe drivers.
The research also reveals that colleagues, friends, and family are often best informed about an individual’s driving behavior.
This insight allowed FairDee to also incorporate a community cashback feature by grouping at least four customers of similar driving profiles together. Customers get 15% cashback of their premium if the entire group does not submit a claim.
FairDee works with six major insurers: Bangkok Insurance, Dhipaya insurance, MSIG Insurance, Thaivivat Insurance, Thanachart Insurance, Tokio Marine Insurance as well as one leading broker – Maxi Insurance Broker.
“I am delighted to see young professionals coming into the industry and creating an innovation which benefits both insurers and customers,” commented Thai General Insurance Association president Jiraphant Asavatanakul.
“FairDee’s insurance innovation is a great channel to promote a safe-driving culture in Thailand. The rate of car accidents directly affects car insurance premiums. Therefore, safer roads would result in affordable premiums,” he added.
Formed in 2016, Vouch Insurtech gained strong traction in 2018. The startup raised a seed round and launching in Singapore earlier this year.
This news is published on Reuters.