A passenger in Beijing presents screenshot of Lichengbao app, which shows driving distance and the premium of the usage-based auto insurance. [Photo provided to chinadaily.com.cn]

"Driving distance decides one's risk exposure, and we will gather more data along to better discern risks, including how many times drivers hit brake and when they go for gas refill," said Shuai.

Lichengbao is also working on setting up a unified online platform for small claims, said Shuai. "Pushing for Internet plus drive among insurers will enable smoother and more convenient claiming experience."

Dreaming big on back of big data

"Usage-based auto insurance is greener, as it encouragesdrivers to take public transportation more frequently," said Shuai.

"Also by offering safer drivers mileage bonus, Lichengbao will help customers take heed of their skills and cultivate better driving habits." The on-board gadget Chebaocan monitors sharp acceleration and slowdown as well as sudden turns, according to the company.

The data company aims to allure 500,000 customers by the end of next year, said the CEO, adding that Chebao currently has around 100,000 users.

In order to come up with individually-adjusted premium, the data company said it needs a sample base of at least 300,000.

"We respect different driving habits," said Shuai, while adding that the big data is to help forge a win-win between insurers and drivers.