Hyundai pushes for lower premiums
BY TERRY MARTIN | 29th Jun 2018
HYUNDAI is attempting to convince Australian insurance companies to lower their premiums for its vehicle owners who can demonstrate excellent driving records via the South Korean car-maker’s Auto Link system.
However, Hyundai Motor Co Australia (HMCA) chief executive JW Lee admits that the big insurers have shown little interest in the so-called user-based insurance (UBI) proposal, despite the app-based system being able to provide highly relevant data on vehicle usage and patterns of driving.
Among the information fed back to owners through their smartphone – and which HMCA can also access – is a full driving history including maximum and average speeds, average fuel efficiency, rapid acceleration and hard braking events, distances covered and travel times involved.
Statistics on the owner’s ‘eco driving pattern’, the vehicle’s ‘speed pattern’ and a comprehensive ‘health report’ are also available.
“We have tried to get our owners some benefit by talking to insurance companies,” Mr Lee said.
“We hope to pass on this benefit to the customer by reducing their insurance (premiums) because their driving pattern is really good.
“The functions are there, the technology is there, and for almost one year we have continuously discussed this with insurance companies.
“But their response has been: ‘Let’s just start the discussion on UBI.’
“We are trying, but they only have a small interest in it,” he said.
Auto Link is currently offered on the latest i30 small car and Kona small SUV and is expected to be offered on all new models including the fourth-generation Santa Fe large SUV (on sale early next month), updated Tucson SUV (due late July/early August), redesigned Veloster sports hatch (early October) and, later this year or early in 2018, the Kona Electric small SUV and i30 N Fastback.
Mr Lee said the insurance sector argues that the Australian market is currently too small to warrant the investment in an automotive UBI product.
“From my point of view, they (the insurance companies) don’t want to reduce their income,” he said.
“My assumption is that insurance companies are not so much aggressive on this product, which is a new area, because maybe competition is not so fierce in this market.”
Mr Lee said UBI was already operating in overseas markets including South Korea and Japan, but that the platform is different to the one operating in Australia.
