The investment will be engaged by Mobility 54 Investment SAS (“Mobility 54”), a corporate venture capital subsidiary of Toyota Tsusho group which was jointly established in October 2019, through the convertible notes investment.
In Kenya, it is compulsory for every car-owner to subscribe motor insurances, and approximately 3 million vehicles are insured today, and insurance premium rates are generally determined based on the value of the vehicle with single and flat rates, irrespective of driver’s driving characteristics and behaviours.
It is therefore considered that good drivers are bearing relatively higher premiums as compared to their driving behaviours and accident risk.
In addition, single and flat insurance premiums may not contribute as an incentive for safe driving and are less effective in preventing traffic accidents and as a result, motor insurances have become a riskier product for insurance companies compared to other insurance products.
These challenges can be seen in other countries in Sub-Saharan Africa as well so the optimized motor insurance for each driver which is enabled by the real-time information on the distance travelled by each vehicle and the driving behaviour of each driver is therefore expected to transform the motor insurance sector in Africa and consequently to reduce the traffic accidents in the continent.
AiCare has developed an in-house technology that uses the automobile driving data and driving behaviour data to calculate the driver’s accident risk and quantify a risk score for insurance products led by the company’s founders who have specialized AI and machine learning.
Furthermore, the data analysis by AiCare system takes into consideration Africa’s unique road conditions and the way vehicles are driven — such as excluding the detection of vibrations caused by the road surface conditions and sudden steering from the accident risk calculation data – which enables to provide insurance companies with more practical and appropriate accident risk analysis for its customers in Africa.
In addition, telematics insurance has a significant potential synergy with the connected services that may emerge across the continent in the coming years and Toyota Tsusho group say it will continue to pursue a safe and better mobility society in Africa by promoting the collaboration of telematics insurance and connected services.