Ant Insurance, an online insurance brokerage platform in China under Ant Group, introduced a new technology for auto insurance powered by privacy-preserving computing.
This technology, co-developed with insurers in China, enables personalized policies and better operational efficiency.
Leveraging Ant Group’s SecretFlow, a unified framework for privacy-preserving computing, the new technology has been adopted by leading insurance providers in China, such as People’s Insurance Company of China (PICC), Ping An, and China Pacific Insurance Company (CPIC), to offer policies for new energy vehicles (NEVs).
Meanwhile, efforts to integrate this technology into policies for conventional fuel vehicles are underway.
Latest figures from transportation authority show a staggering 330 million automobiles on China’s roads as of the end of 2023, with 20.41 million classified as NEVs.
However, the traditional pricing model for auto insurance in China factors in more on the vehicle conditions rather than the driver. However, human factors tend to play a more substantial role in automobile accident rates.
As a result, the absence of a commercially viable pricing model presents a challenge for insurers in the automobile insurance sector, making it difficult for them to generate profits.
Since 2022, Ant Insurance has been joining hands with insurers to develop a collaborative pricing model leveraging SecretFlow, enabling them to factor in both vehicle attributes and driver records to offer customized policies.
This technology enhances the integrity and confidentiality of data analysis, improve pricing strategies and reduce risks for insurers. As a result, on average, the price of policies utilizing this technology can be reduced by several hundred RMB for car owners.
Jiang Minglong, head of the auto insurance business at Ant Insurance, noted: “This new technology demonstrates our commitment to working with insurance companies to resolve their pain points and accelerate their digital transformation, providing users with more convenient and high-quality insurance services.”
Ant Group has been exploring privacy-preserving computing since 2016 and open-sourced SecretFlow in July 2022.
As a comprehensive and integrated framework designed to advance data intelligence while protecting user privacy, SecretFlow integrates a range of technologies, including multiparty computation, federated learning, Trusted Execution Environments, homomorphic encryption, differential privacy, and so on.
Now with SecretFlow, developers can leverage cryptographic computations more easily, unlocking the full potential and value of business data and facilitating secure and transparent industry collaborations.
Business-News-Asia.com
