Toyota Tsusho alongside group company CFAO have invested in AiCare, a telematics insurance system targeting insurance companies in Kenya. The investment will be channeled through Mobility 54, a corporate venture of the Toyota Tsusho group established in October 2019 via a convertible notes investment.
AiCare runs on in-house technology that relies on automobile driving data and driver behavior data to access the driver’s accident risk followed by a quantity risk score on insurance products run by the company’s founders specialized in AI and ML. Insurance companies can also use the score provided by AiCare rather than having to invest in the technology from scratch.
Vehicle insurance is compulsory for vehicle owners in Kenya. Over 3 million car owners across the country have insurance. The rates charged on motor vehicle insurance are based on the value of the vehicle and can be either single or flat depending on the driver’s driving behaviors.
From a rational perspective, single and flat insurance rates do not offer an incentive for safe driving and are less effective in the prevention of traffic accidents. This has created a scenario where motor insurance has become a risky product for insurance companies as compared to other insurance products.
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