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June 13 2013 | Mark Breading

Boston, Massachusetts, June 13, 2013 – Strategy Meets Action (SMA) has just released the fourth research brief in SMA’s Telematics/Usage-Based Insurance Series. This research reveals the distinct differences between the attitudes of agents and insurers regarding how UBI will affect their business. 

Research results provide insight into

  • the current state of the North American UBI market,
  • the anticipated impact on agents/brokers, and
  • recommendations for agency companies entering the UBI market.

The study confirms two major points: while market penetration for usage-based insurance is modest today, it is expected to grow rapidly. According to the findings, insurers see market penetration reaching 36% by 2020, while agents expect only 19% of the market to use UBI. Research data also suggests agents and brokers have significant concerns about the impact that UBI will have on their businesses, while insurers may be underestimating the challenges of selling UBI through independent channels.

The study identifies the keys to capitalizing on new opportunities in UBI for agents and insurers, including developing new value propositions (for the agent as well as the consumer), education, defining the agent’s role in post-sale service, and commissions. For the complete survey results, read Telematics/Usage-Based Insurance: Implications for Agents, available online.

Insurers, IT providers, and media who are interested in learning more about SMA’s telematics research and advisory services should contact Mark Breading at mbreading@strategymeetsaction.com or (614) 562-8310.