KB Insurance Signs Product Development Agreement with LG Uplus... Save on Premiums for Safe Driving

Development of Special Contract for Data-Based Vehicle Management Service
Encouraging Safe Driving to Reduce Insurance Premiums

A new insurance product is being developed that offers lower premiums to drivers who drive more safely, based on data analysis.

From the left, Lee Pyoungro, Co-CEO of Smallticket, Sungyul Park, Head of Corporate Business Innovation Group at LG Uplus, and Hyuk Kim, Head of Auto Insurance Division at KB Insurance, are signing a business agreement for developing products based on real-time vehicle data and taking a commemorative photo on the 2nd at LG Uplus Yongsan Building in Yongsan-gu, Seoul. Hyuk Kim, Head of Auto Insurance Division at KB Insurance (right), Sungyul Park, Head of Corporate Business Innovation Group at LG Uplus (center), and Pyoungro Lee, Co-CEO of Smallticket (left), are taking a commemorative photo after signing a tripartite business agreement (MOU) for developing products based on real-time vehicle data.

On June 2, KB Insurance announced that it had signed a business agreement with LG Uplus and the insurtech company Smallticket at the LG Uplus Yongsan Building in Yongsan-gu, Seoul, to develop a "commercial vehicle insurance special contract product."

KB Insurance plans to work with these companies to develop next-generation auto insurance products and risk management services that combine vehicle data with artificial intelligence (AI)-based technology.

This collaboration is expected to establish an integrated accident prevention and risk management system through the organic cooperation of an insurance company, a telecommunications company, and an insurtech company.

KB Insurance will develop an "FMS (Fleet Management Service) special contract" that offers premium discounts based on data from LG Uplus's vehicle management service, "U+ Connect."

FMS is a system that collects various types of real-time information, such as location, speed, sudden acceleration or deceleration, and driving time, through a device attached to the vehicle.

The three companies plan to analyze real-time driving data from corporate vehicles in the future and create products that apply differentiated premiums to each driver based on driving habits and accident risk.

For example, drivers who rarely brake suddenly or speed could receive greater premium discounts, while those with risky driving habits could receive lower discount rates.

Hyuk Kim, Head of Auto Insurance Division at KB Insurance, said, "This agreement is a meaningful case that combines the expertise of telecommunications and insurtech with the know-how of an insurance company to encourage safer driving and provide premium discounts for customers. KB Insurance will continue to strengthen its auto insurance competitiveness by developing differentiated products."

Sungyul Park, Head of Corporate Business Innovation Group at LG Uplus, said, "Insurance products that utilize driving data offer new options for customers and enable more efficient risk management for insurance companies. We will continue to drive innovation in data-based B2B business through technological challenges and progress."