It's difficult to predict what the personal auto insurance market will look like by the turn of the next decade, but even conservative estimates indicate telematics and usage-based insurance (UBI) will become a catalyst for change, according to a recent Strategy Meets Action research paper.
Richard Welch, a former insurance CEO, is a guest author of the SMA report along with SMA partner Mark Breading, believes that even with just 10 percent of the market in 2020, that still means 25 million cars will be insured through some type of UBI program.
“That has strong implications for the rest of the insurance market,” says Welch. “If even 10 percent [of policyholders] move into this space it will have a significant disruptive impact on the market as a whole.”
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
