Design Of UBI Auto Insurance Business Model In China

Motor vehicle insurance(referred to as " Auto insurance") as a major property insurance in China’s insurance market, its premium income in property insurance has been for the major part. Although it has a larger proportion of premium income, the earnings of China’s auto insurance industry is not satisfactory. Thus, in 2015 China began to study the implementation of the reform of auto insurance rates, putting more rights to the insurance company. At the same time, with the rise of Big Data and connected car technology, insurance companies have a practical way to get technical operating parameters of the vehicle, driving behavior, road and environmental data, and apply it to the customer preferably, determining auto insurance rates, claims, etc. In this environment, the UBI insurance begins to develop.UBI Insurance let insurance companies have accurate pricing and marketing ability,but due to tariff reform has just begun, car networking technology is not yet mature,and UBI auto insurance on the market has many problems, so the insurance company becomeskeptical of UBI. This paper describes and analyzes the background aspects and problems of UBI Insurance, combined with the experience of foreign insurance companies, discussed the necessity of the development of UBI insurance business model, proposed contents of the insurance company of UBI auto insurance and its reasonable argumentation, creatively put forward solutions to privacy issues and the feasibility applying smartphone UBI were discussed. Finally, giving the insurance company the UBI development strategy.