Awareness and enrollment in usage-based insurance (UBI) programs has plateaued, according to the LexisNexis Risk Solutions' "Usage-Based Insurance Study," and it's time for insurance carriers to rethink their approach to UBI programs. In 2015, about 39% of consumers are aware of UBI programs, up one percentage point from the year previous, and up three percentage points from 2013.
In addition, just 5% of drivers are enrolled in UBI programs—the same percentage as 2014.
"Historically in the U.S., usage-based insurance has been defined as a program to reward good driving behavior with discounted insurance premiums, however, offering a premium discount is becoming less attractive to drivers and less sustainable to insurers," says David Lukens, director, telematics, at LexisNexis Risk Solutions.
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