Since 2012, the market share of usage-based insurance (UBI) policies has doubled, indicating that UBI is a rapidly expanding phenomenon, according to strategy consulting firm PTOLEMUS. The 2013 UBI Global Study provides nearly 800 pages of analysis and recommendations based on interviews with industry players. The study aims to address the impact of telematics on the insurance sector, identify challenges facing insurers entering the UBI field and the current state of the UBI market.
Telematics is an expanding sector of the insurance industry, representing more than 5 million drivers, and is expanding on the global level. In the last 18 months, 170 UBI programs have been established.
The study found that the UBI market is moving towards globalization. Already firmly established in the U.S., United Kingdom and Italy, the study estimates UBI will represent more than 100 million policies generating more than $80 billion in premiums by 2020. The U.S. leads market growth, but new markets in Latin America and Russia are expected to emerge in the coming months.
The study's key findings suggest ways in which agencies can collect big data in a cost-effective way. Data reliability, quality, and completeness, as well as analytical interpretation is important for efficiency. Research indicates that the smartphone will increasingly become an effective entry-level device to collect driving behavior data.
The study indicates that the black box will continue to be the leading technology that drives the value-added services market. PTOLEMUS also asserts that BD dongle solutions will remain dominant in the U.S., although emergence in Europe in the coming year is expected, particularly in low-premium markets.
In terms of industry outlook, the study predicts the emergence of new models that focus on driver benefits and management claims. Premium discounting will only represent one option.
On a global scale, governments and regulators look to telematics as a way to reduce traffic and CO2 emissions.
Including 38 case studies, 360 charts, 56 applicable patents, 20 country profiles, and 10-year forecasts, the 2013 UBI Global Study report provides a detailed analysis concerning the state of the current state and future outlook for the UBI market.
To provide agents and brokers with a comprehensive look at UBI from a global perspective, PTOLEMUS is offering a free download of the 2013 UBI Global Study's abstract on their website, and though it only consists of a fraction of the information, the abstract is over 100 pages in length.
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