The Key Factors to Promote the Pay-As-You-Drive Insurance in Taiwan

Abstract

Advanced insurance companies move toward using advanced technologies such as telemat-ics to develop fair and transparent pay-as-you-drive (PAYD) automobile insurances. The expert service providers' opinions are essential and valuable for them to avoid and control any risk of entering a new market. Therefore, this study explores the critical factors for introducing and promoting the PAYD insurance system in Taiwan. We adopt the telematics business ecosystem of Taiwan's vehicle insurance market to construct partnerships for supporting managerial suggestions for promoting PAYD insurance in Taiwan. The supportive data extracted from reviewing automobile insurance-, and telematics-related literature and conducting interviews with experts in telematics and insurance-related industries in Taiwan to understand their perspectives. Fifteen key factors for introducing PAYD in Taiwan are organized, and several managerial suggestions are developed. Results show that the car dealership industry is most likely the leader of the PAYD insurance market in Taiwan and that telematics companies are niche players for promotion. According to our findings, the business ecosystem of PAYD in Taiwan requires new system integrators. Telematics services can integrate into the Omni-Channel model and bring additional value to customers and service providers.