The case for Usage Based Insurance in Malaysia |

Telematics / Usage based insurance in Malaysia

Based on report by Malaysian Institute of Road Safety Research (MIROS), Malaysia is placed at 17th in the world when it comes to road fatalities. The road condition in Malaysia is so grim that 24 fatalities occur on the road for every 100,000 inhabitants in this country.

Between the year 2004 and 2013, there has been a death of 65,850 people due to road accidents resulted in as much as RM78 billion lost in potential economic contributions to the nation.

Moreover, such a high rate of road accidents lead to numerous complications in several industries.

The motor insurance industry in Malaysia has been making losses every year. For the first half of the year 2015, Malaysian motor insurance industry already made a loss of RM221 million due to high claim loss rate. For every RM100 received as motor premium, motor insurers will lose an average of RM72 due to claims alone. For an industry that is worth USD 2 billion, we can expect USD1.4 billion will be gone as claim.

This claim loss ratio is very high by any measurable standard.

On top of that, high accident and fatality rate in Malaysia is putting more pressure onto the health sector and public infrastructure. While the government is subsidizing health industry in an effort to make it affordable to the wide masses, we have to take drastic steps to curtail an ever increasing health expenditure due to recklessness on the road.

Usage based insurance and KATSANA Insight™.

For the past two years, the KATSANA team has been gathering experience and knowledge in the GPS tracking technology and over time, we realize that our technology can be of good use for the greater good of the society. The selling points on KATSANA for our enterprise users are the capability to understand drivers behavior on the road and creation a risk profile sumary of the drivers.

These exact selling points are particularly useful and highly sought after by motor insurers in an effort to reduce motor claims and accidents.

KATSANA is on a mission to create safer roads in Malaysia by empowering motor insurers with driver’s behavior data, and at the same time trains & reward drivers for being good on the road.

A similar telematics-focused insurance program has been deployed in UK, Canada and USA by a few motor insurers. Within the course of just one year, the motor insurers (Ingenie of UK, and Progressive of USA) are able to reduce crash risk by 40%.

UBI / Reduction of crash risk in Malaysia

This is a drastic and tangible improvement.

We hope that once KATSANA Insight is deployed by motor insurers in Malaysia via development of new usage based insurance products, we can see a drop in accidents and claim loss at at least 25%.

This would mean KATSANA will become the catalyst for change.

We will be able to reduce the economic losses of RM78 billion by 25%, which is around RM 20 billion. On top of that, KATSANA can help motor insurers to reduce their 71.5% claim loss rate and turn them into profitability by saving almost USD 350 million annually.

The benefits of reducing car accidents are trumendous. Families are no longer broken by sudden horrific loss of family members, talents to grow the nation are kept safe, reduction in expenditure to fix public infrastructure damaged by accidents, reduction in health expenditure by the country and the list can go on.

KATSANA Insight™ is primed to make a difference, and we need your support for that.

Read more about KATSANA Insight here

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