Ping An says artificial intelligence can address car insurance issues arising from three policies on Hong Kong-Zhuhai-Macau Bridge

Anyone who has driven on the Hong Kong-Zhuhai-Macau Bridge knows that they need three insurance policies – an expensive and complicated process. But insurers say that the problem can be solved through regulatory changes and use of technology, so as to encourage more cross-border travel in the “Greater Bay Area”.

Ping An Insurance (Group) said artificial intelligence technology can help mitigate a lot of the problems faced by insurers and policy holders because of the unique situation of “one bridge, three policies”, as different insurance regulations from Hong Kong, mainland China and Macau are in play.

“As per the laws of Hong Kong, Macau and mainland China, it is mandatory for all drivers to buy third party motor insurance so that they provide compensation in case of an accident that causes an injury or fatality,” said Bernard Chan, president of Hong Kong-listed insurer Asia Financial Holdings and convenor of the Executive Council. “And since the compensation amounts vary between the three markets and policies have to be bought individually for these jurisdictions, there is no ‘one bridge, one policy’ solution.”

In Hong Kong, all drivers are required to have third party motor insurance cover of HK$100 million (US$12.74 million); in mainland China the cover stands at 122,000 yuan (US$18,172), while in Macau it varies for different car categories, but the minimum cover is 1.5 million Macau patacas (US$185,524), according to data from the Insurance Authority of Hong Kong.

“The gap in the mandatory motor insurance requirement is so huge that it is impossible for the three governments to find a solution and unify their requirements in the near term,” Chan said.

He added that those who want to work and live in different jurisdictions in the Greater Bay Area will suffer from these insurance policy differences as they will have to buy different motor and medical insurance.

Haywood Cheung, chairman of Target Insurance, a Hong Kong-listed car insurance company, said the need for three policies was “stupid and expensive”.

“The Insurance Authority should work with their mainland and Macau counterparts to reach an agreement to allow anyone who wants to work and live across the border to have a single insurance policy,” Cheung said, adding that if a practical arrangement is not reached then it will become hard to encourage Hongkongers to go north to work and live in the Greater Bay Area.

Beijing last month introduced a blue print for the Greater Bay Area to link Hong Kong, Macau and nine cities in Guangdong province into an integrated economic and business hub.

“Many people think of AI for its use in facial or voice recognition, but these are just basic applications of the technology,” said Jessica Tan Sin-yin, co-chief executive of Ping An Insurance (Group). “We now use AI to assess claims and handle more complicated insurance administration.”

Tan explained that previously to handle two or three different policies involving a car accident meant a lot of paperwork and communication between the staff of different insurance companies to check policy cover, evidence of damage and liability.

Now the mainland insurer uses AI to help simplify and speed up the claims process, Tan said.

In case of a car accident, all that the driver has to do is take a photo of the damaged cars and send it to the insurer by email or any other electronic channel. Ping An then uses its AI-backed solution to review the damage, suggest compensation and even prevent fraudulent claims.

Tan said that the company has the technology in place to support cross border insurance needs to support the development of the Greater Bay Area, adding that all that is needed now is regulatory approval.