The company has reached sales and strategic cooperation with more than ten provincial insurance companies such as Pacific P&C Insurance, China Life Insurance, and Dadi Property Insurance.
In August 2018, the General Office of the Ministry of Transport issued the Notice on Promoting the Application of Intelligent Video Surveillance and Alarm Technology. The document requires long-distance passenger vehicles, tourist buses, and dangerous goods transport vehicles to improve safety performance and force installation of intelligent video surveillance. Alarm, anti-collision and vehicle safety management technology and equipment for the entire ship, to speed up the upgrading of safety technology equipment for the already operating.
The Ministry of Industry and Information Technology also mentioned in the interpretation of the “Intelligent Network Linked Vehicle Road Test Management Specification” that “with the gradual improvement of intelligent networked technologies such as hazard warning, collision protection, emergency call, etc., the industry of high-grade intelligent networked vehicles Development, as well as the application of a new generation of wireless communications, information security management and control technologies, we believe that the traffic accident rate will be greatly reduced.”
The reduction in traffic accident rates will also reduce the rate of claims for auto insurance. According to the test data of the Israel Insurance Regulatory Commission, from 2009 to 2012, after three years of tracking, the probability of claim settlement for vehicles equipped with Internet-connected devices dropped by about 50%. In 2017, China’s auto insurance market premium income was more than 700 billion yuan, and the indemnity was more than 400 billion yuan. Assuming that the application of smart car system can reduce 10-20% loss, it means insurance company. And its partners will be able to share tens of billions of security benefits and the surrounding derivative value each year.
The recent contact on the road to see such a market opportunity, the company redesigned the insurance channel transaction structure, through the insurance company to pay for the hardware, to provide the team with ASAD in-vehicle equipment and its self-developed The vehicle intelligent wind control system, then analyzes and processes the vehicle operation data collected by the hardware through the vehicle intelligent wind control system, and provides the insurance company with a full-chain data service such as a vehicle risk database, a pricing model, a marketing plan, and a claims liability nuclear damage to help the insurance company. Increase business growth and reduce its overall cost ratio.
Vehicle Driving Intelligent Air Control System System Interface
Founder and CEO of Zhijia on the road LuoXianqiang shared the market pain points they found in the interview:
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In the auto insurance enterprise, the passenger car market slowed down, the channel cost was high, the car insurance was not sticky, the renewal rate was not high, the premium scale decreased after the commercial vehicle fee was changed, and the comprehensive cost rate continued to rise. As passenger car profit margins decline, auto insurance companies need to find new business growth points and expand the scale of premiums. At the same time, auto insurance companies also need new technology to reduce the incidence of vehicle accidents, help them reduce the overall cost rate, improve customer stickiness, and increase the renewal rate. In the past five years, commercial vehicles have maintained a relatively high growth rate. With the application of new technologies, the commercial vehicle loss ratio has a large space to reduce, and has become the main track for the insurance company’s auto insurance business.
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In the commercial vehicle fleet, the operating frequency of the vehicle is high, the maintenance is not timely, the overload is easy, the driver is easy to drive, the management of the fleet is difficult, and the national policy mandates the installation of smart security. Driver assistance systems cost a lot.
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The team needs “hardware + systems” to effectively manage vehicles and drivers for vehicles and drivers, reducing the risk of accidents. Insurance companies need new tools for differentiated pricing and claims risk control to control overall costs.
Based on the above pain points, the road has designed the overall solution of “Hardware+Platform+Operation”, which is currently aimed at the commercial vehicle (Group car) insurance market. Specifically, first, the team buys auto insurance from a cooperative auto insurance company on the road, and the auto insurance company will provide both the compliant hardware and the vehicle insurance service (bound for 3 years auto insurance cooperation); As a hardware and service provider, Zhizhan collects hardware costs and platform system service fees from auto insurance companies, provides vehicle networking hardware equipment such as ADAS and DSM, and self-developed active intelligent driving vehicle intelligent air control system. Finally, The cooperation between hardware and platform can monitor the driving process online in real time, provide drivers with active warning voice prompts to avoid accidents; on the other hand, collect vehicle driving data, perform data mining and analysis modeling, and statistically analyze behavior data. Analyze the team and driver to conduct risk scoring and regularly output data analysis reports to provide insurance companies with insurance pricing and claims, and provide management suggestions for the team.
When the insurance company buys the hardware, the driver can help the auto insurance company to improve the insurance renewal rate of the team. At the same time, the ‘free’ strategy can also help the insurance company to quickly expand. As for why commercial vehicles are chosen, Luo Xianqiang explained:
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First, the commercial vehicle market is large enough and there is a demand for policy hardening. The “two passengers and one danger” mentioned above are all commercial vehicles. Previously, Bain Company and G7 released a “China Highway Freight Market Research Report”, showing that the overall turnover of China’s road freight has reached 610 billion tons in 2017, the number of heavy trucks has exceeded 5 million, and the number of light and medium trucks has exceeded 14 million vehicles. Behind this is a huge insurance market. The annual premiums of heavy-duty trucks are mostly above 20,000 yuan, and the annual premium will exceed 100 billion yuan. Moreover, the premium of the amount of money also makes the insurance company more willing to pay for the hardware.
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Second, insurance companies need to expand the insurance company’s premium scale in the commercial vehicle market, and the pricing and risk control of insurance companies in commercial vehicle insurance is true, At present, more than 90% of the property insurance companies in China have serious losses in the logistics industry such as operating vehicles. The average payout ratio for operating trucks is around 80%.
In the choice of hardware products, the manufacturers of the equipment provided by Zhizhi on the road are car-grade or industrial-grade, and the products pass through Israel.
MOLBILEYE and the US LDES authority have passed the technical standard scoring certification, and a large number of landing tests have been carried out on the platform to ensure high stability and accuracy.
Based on the above services and business models, the revenue from the road is mainly derived from hardware sales expenses, platform system service fees, insurance business back-end sharing, and data service fees.
At present, the company’s vehicle driving intelligent wind control system was officially launched in April this year. As of July, the company has reached sales and strategic cooperation with more than 10 provincial insurance companies such as Pacific P&C Insurance, China Life Insurance, and Dadi Property Insurance.For more than 400 vehicles, the revenue is 1.5 million+. The current model has been verified by the market and runs through. It is estimated that the installed capacity of 8000-10000 vehicles will be 20,000 in 2019, and the revenue will be 20 million. By 2020, the installed capacity will be 50,000.
Team, founder and CEO Luo Xianqiang is a master’s degree in economics at Zhejiang University. He has been in the insurance industry for more than 20 years. He has served as a senior executive of large financial insurance companies such as PICC, AIU, and Taibao, with cumulative sales exceeding 3 billion. /span>The industry is rich in resources.
It is reported that at present, on the road is seeking Pre-A round financing, funds are mainly used to rapidly expand the national regional market, occupying the commercial vehicle data entry.