Lockton Companies Hong Kong wins Insurance Asia Awards 2024 for taxi insurance project

It has partnered with TaxieCo to revive the taxi insurance industry, which has been recovering from underwriting losses.

Independent insurance brokerage Lockton Companies Hong Kong received the Auto Insurance Initiative of the Year - Hong Kong category win at the prestigious Insurance Asia Awards for its successful venture with telematics tech startup TaxieCo that have utilised the power of big data and have converted live telematics driving data into usage-based insurance (UBI) data which can be used to supplement the limited data used by insurance companies.

This partnership comes amidst Hong Kong’s taxi insurance industry recording underwriting losses in 10 out of 15 years in excess of HK$323m, despite average annual premiums per vehicle having grown. Coupled with the region’s ageing population, this pain point has deterred new players whilst impacting livelihoods as a whole.

Over the course of two years, Lockton and TaxieCo have made significant progress in the stagnant taxi insurance industry and are currently the market leader in terms of the total number of taxis with telematics device “T-Box” installed within the entire number of taxis operating in Hong Kong. It is also the only service provider producing risk relativity data for insurers.

Pioneering in using statistical modelling techniques to convert telematics data into underwriting relativities, Lockton and TaxieCo have brought light to the taxi insurance industry by not only pinpointing specific driving behaviours leading to accidents but also providing ongoing statistics to taxi managers/ owners on whether their drivers are acting diligently and cautiously.

This innovation has drawn the attention of insurers within the taxi insurance industry and attracted new players who are keen to embed UBI into their underwriting models in an effort to fight their way out of the traditional underwriting model and move into the era of big data.

The growing number of insurers adopting the UBI model has also added to the mix in revitalising the taxi industry, which can be clearly reflected by more competitive market premiums for taxi vehicles with a better rating as they can now be identified with telematics data.

Moreover, this initiative has been well-received by various government agencies which have provided subsidies and technology vouchers to taxi operations in support of the initiative and the Government’s Smart City Blueprint. With the ever-growing number of taxis installing the device and recognition from the insurers, this innovative project is also extending its reach to commercial fleets across jurisdiction. Coupled with the development of the T-box telematic device in capturing additional data, Lockton sees new business opportunities in micro-insurance and innovative digital platforms for marketing and distribution,

“Fleet operators complemented by greater transparency on their fleets, insurers satisfied by more underwriting or claims information, owners with more competitive premiums, drivers and passengers with greater efficiency and more importantly, better road safety will perhaps be the only obstinate items on the list which will remain unchanged as the UBI model is highly flexible to accommodate the needs of its respective stakeholders,” the company said.

Insurance Asia Awards celebrates insurance companies that have redefined traditional boundaries through groundbreaking innovation and have left a profound impact on customers and the industry.

The Insurance Asia Awards is presented by Insurance Asia Magazine. To view the full list of winners, click here. If you want to join the 2024 awards programme and be acclaimed for your company's significant impact on its customers with exceptional products, services, and solutions in the insurance industry, please contact Julie Anne Nuñez at [email protected].