On the Feasibility of Implementing Usage-Based Auto Insurance in Taiwan

• Main Authors: FU, HAN-MIN, 傅瀚民
• Other Authors: Lai, Kun-Jung
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/2c3w2b

碩士 === 逢甲大學 === 統計學系 === 105 === More than half of the profits of property industry in Taiwan come from auto insurance. The premium of auto insurance is calculated based on the data from historical experience and the risk factors such as age and gender. According to the research from Ministry of the Interior in Taiwan, about 98% of the cause of car accidents is due to the driving behavior. We cannot use the traditional actuarial method to calculate the premium based on driving behavior, how many miles the insured drive or when the insured drive. There comes the UBI (Usage-based insurance). The study is focused on the feasibility of implementing UBI auto insurance in Taiwan. Learning from the UBI cases in U.S. and European countries, we discuss which way is better for the development of UBI auto insurance in Taiwan. Because of the small market of auto insurance in Taiwan, it is difficult to get the data needed to calculate the premium based on the driving behavior. We suggest that we can start from implementing the UBI auto insurance in the form of compulsory insurance. We can then collect enough data of driving behavior. After the acceptance of UBI auto insurance is higher, the auto insurance company can promote the commercial insurance to identify the customer with good driving behavior and improve the loss ratio by reducing the occurrences of the car accidents.