Key facts
- Aioi Nissay Dowa Insurance and Itochu Corporation will jointly develop insurance products for self-driving taxis.
- Sales of the new insurance products are planned to begin in the U.S. as early as fiscal year 2027.
- Itochu has invested in Moter Technologies, a U.S. company that uses AI to analyze driving data and score accident risk.
- Moter Technologies was established in April 2021 as a subsidiary of Aioi Nissay Dowa Insurance.
- The U.S. auto insurance market is projected to grow by an average of 5% annually from 2024 to 2030.
Japanese insurance firm Aioi Nissay Dowa Insurance and trading house Itochu Corporation are set to collaborate on developing specialized insurance products for self-driving taxis, with an eye on the U.S. market. The companies aim to commence sales as early as fiscal year 2027.
This initiative leverages Itochu's recent investment in Moter Technologies, a California-based software developer that utilizes artificial intelligence and telematics data to assess accident risk for auto insurance. Moter, established in April 2021 as a subsidiary of Aioi Nissay Dowa Insurance, develops scoring models that analyze driving data and onboard camera footage to determine safe driving and accident risks. These models are used to create auto insurance products offered under automobile manufacturers' brands, as well as risk management services for fleet operators and data analysis for insurers.
The U.S. auto insurance market, the world's largest, has seen rapid expansion of risk analysis services and Usage Based Insurance (UBI) driven by connected cars and advanced driver-assist systems. The market is projected to grow by an average of 5% annually between 2024 and 2030, with data-driven insurance products expected to capture around 35% of the market by the end of the decade. Itochu aims to enhance its position as a leading Japanese corporate insurance distributor and broker by integrating Moter's technology with its global network and reinsurance capabilities, thereby accelerating its expansion into the next-generation auto insurance sector in the U.S. and Asia.