Fairdee uses technology to reward safe drivers

Speaking at the Thailand Insurance Symposium 2018 last Wednesday, Thanasak said FairDee’s business model is to reward customers who change their behaviour on claims in a positive way.
Currently working with five major auto insurers in Thailand, including Bangkok Insurance, Dhiphaya Insurance and Thanachart Insurance, the tech start-up offers|as much as a 30-per-cent saving |on auto premiums to qualified customers.
The extra saving is on top of the existing discount of up to 20 per cent currently given by insurance firms to customers who have a safe driving record in a given year.
According to Thanasak, most Thai customers tend to view auto insurance policies as a service that they should maximise the financial benefits by filing as many claims as possible, resulting in a relatively high ratio on claims and a tiny profit margin for insurers.
Statistics shows automotive insurance claims in Thailand are as high as 60 per cent compared to only 17 per cent in Singapore, for example.
As a result, these are pain points for both customers, especially those who are safe drivers and do not file claims, as well as insurance firms whose claim expenses are relatively high eroding their profitability.
In this context, FairDee Insurtech offers safe drivers a new choice to join a community of like-minded drivers and earn a significant saving on annual insurance premiums.
Thanasak said the startup basically works with existing insurance firms to help manage their claim expenses via the FairDee social platform in which safe drivers are encouraged to form a group of four like-minded drivers to earn a saving of as much as 30 per cent on auto insurance premiums.
“We offer the first 15 per cent saving on premiums (paid to any of the participating insurance firms) as a personal saving, while another 15 per cent saving will be given if all four other members of the group also do not file claims in a given year.”
“This will be on top the maximum 20 per cent discounts already given by insurance firms to those who are safe drivers with no claims in a given year. 
“We want to encourage safe driving and influence changes in the claims behaviour among customers in Thailand in a positive way as many are used to filing as many claims as possible.”
“As a member of the community, we hope customers will be more selective and cautious on making claims due to the financial incentive offered as a group saving.”
“So our goal is to attract safe drivers to invite friends to join the platform to earn these savings which are displayed right from the start of using the platform with explicit figures of the money which will be saved, showing from Day One.”
“We aim to tap those wanting a fairer social insurance platform since safe drivers will no longer have to subsidise those whose driving is unsafe or those who want to file claims as many as possible.”
“While we may not be able to completely change the driving behaviour, the platform will encourage customers with financial incentives to change their claims behaviour in a positive way.”
“In Singapore where the platform was originally started as Insbee, the business model is quite different. We have to localise our model to better suit Thai customers,”he said.