Taiwanese regulator Financial Supervisory Commission (FSC) has approved Nan Shan Insurance to work with electric scooter manufacturer Gogoro to provide legitimate usage-based insurance (UBI) policies for scooter riders, reported the Taipei Times citing an announcement from FSC.
This approval comes after FSC had asked insurers to halt UBI sales last year as these insurers lacked adequate data on user behaviour. They therefore failed to convince the regulator that their premium calculations were accurate, said Insurance Bureau Director-General Shih Chiung-hwa.
The bureau noted that few insurers had asked riders to record their electric scooter usage via mobile apps developed by them which resulted in many consumer disputes.
Unlike traditional vehicle insurance policies, UBI premiums vary depending on factors such as the distance measured by a vehicle’s odometer or riders’ behaviours and their riding speed.
The premiums for the upcoming UBI policies will be determined using Gogoro’s database, said Mr Shih.
Gogoro records distances covered by its users and offers a battery change service to them as well. This means that Nan Shan will be receive comprehensive data and avoid consumer disputes.
The insurer expects to launch the new policies in the second quarter of this year at the soonest, it said.