As a new kind of commercial car insurance, the behavior-based insurance (BBI) will probably

lead underwriting to a new industry direction. Its core role is differentiating drivers by judging
driving level, thus offering different insurance service. But is it a typical example of “Complex
products, simply distributed” ?
Through On-Board Diagnostic (OBD), the driving information of a car can be collected and
analyzed. From the data the insurers know the driving condition composed with driver’s habit and
the car’s status. So they can offer personalized insurance service to drivers. The drivers with good
driving condition can enjoy a discount in the insurance tuition.
However, will behavior-based insurance get a simple origination process is still not clear. Though
it is not hard to solve technique problems, the argument is the whole process of collecting data.
The users of this insurance have to give insurers the right to analyze their private data. And in the
range of insurance industry, the application of BBI will undoubtedly change the old risk-
estimation model. In the stage of regional test and constantly correction, the performance of new
model will decide the future of behavior-based insurance.