Usage-Based Insurance (UBI) in the Automotive Sector

The usage-based insurance or insurance telematics market is experiencing robust growth, with Europe and North America being the primary regions for these programs and active policies. Berg Insight estimates indicate that there were 12.8 million insurance telematics policies in Europe by the end of 2019. The number of these policies in Europe is expected to grow significantly at a compound annual rate of 28.2%, reaching 44.5 million by 2024. In North America, the number of insurance telematics policies is projected to increase from 14.7 million in 2019 to 53.6 million by 2024, with a compound annual growth rate of 29.6%. 

Major insurance providers countries have been actively working with telematics and UBI solutions, with some launching trial programs, like Allianz's 2007 initiative in Europe. With over 13% of our customers being from the automotive sector, we work with telematics and insurance telematics projects globally. Let’s dive deeper into the UBI market, applications, and success stories. 

Leading UBI Vendors

The increasing demand for usage-based insurance has led to more partnerships and alliances between insurers and telematics providers. For example, MSI and Carro, Hastings Direct and Cambridge Mobile Telematics, IMS and Nationwide, teamed up to offer UBI solutions. Explore more about the leading UBI vendors below:

Vendor 

Regions 

Website URL 

ByMiles 

UK (Partnership with Ford) 

https://www.bymiles.co.uk/ 

Octo Telematics 

Global 

https://www.octousa.com/ 

Cambridge Mobile Telematics 

Global 

https://www.cmtelematics.com/ 

Insure The Box 

UK 

https://www.insurethebox.com/ 

The Floow 

UK, Italy, USA, China 

https://www.thefloow.com/ 

Targa Telematics 

Italy 

https://www.targatelematics.com/en/ 

Key Applications of UBI within Automotive

The list of UBI applications within the automotive sector is quite broad – have a look at the major examples:

UBI Application Description 
Fleet Management While OEM installations are prevalent for individual vehicles, commercial fleets may opt for standardized insurance policies, which could lead to the use of common third-party solutions for UBI. 
Personalized Offers Analysis of data generated by UBI users enables insurance providers to offer personalized deals and services, boosting customer loyalty and policy renewals. 
Smartphone-Based Solutions Leveraging smartphones for UBI applications, which is cost-effective and allows for lower premium pricing, though it may lack uniformity in sensors and tracking capabilities. 
Addressing Privacy Concerns and Misconceptions Concerns related to tracking driving behavior and data accuracy, privacy issues, and misunderstandings about the cost savings associated with UBI. 
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