Can auto insurers seize an opportunity to potentially grow by more than 10% without directly engaging their competitors' client base?

About one in eight U.S. drivers doesn't purchase insurance, representing an intriguing and untapped market for insurers. Usage-based insurance (UBI) may raise a compelling opportunity to connect with this lost segment.

Each state typically requires vehicle owners to carry minimum levels of liability insurance coverage, although low penalties and ineffective enforcement potentially help millions of uninsured drivers to avoid any real consequences. If insurers offer greater limits of uninsured motorist (UM) coverage — and if states strengthen their auditing of uninsured drivers — this may help mitigate the risks that the UM cohort poses to fellow drivers.

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