Telematics/Usage-Based Insurance

A Catalyst for Change

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Author(s):

Richard Welch, Guest Author

Mark A. Breading, Partner

Publication Date:

November 30, 2012

Number of Pages:

11

Price:

$995.00 USD

Any company with a stake in the personal auto insurance business must recognize that usage-based insurance (UBI) is a market disrupting force that will have a major impact over the next 10 years. This SMA Research Paper is the first in a series of reports that takes a comprehensive look at UBI programs in the market, plans for new UBI programs, opportunities and challenges facing insurers, and expectations for market evolution.

Based on a survey and extensive interviews, this paper provides insights into the following areas:

• The evolution of UBI in the North American market (why we are at a tipping point)
• The current state of the market (including insights on the features of programs in the market)
• Customer adoption and implications (hurdles to overcome for UBI to gain significant market share)
• Important market considerations (including patents, regulation, and loss experience)
• UBI directions (including the likely impact on insurers, channels, and consumers)
• Planning for the future (how insurers should plan to compete in the future UBI world)

This research paper will be valuable for personal lines auto insurers, agents/brokers, IT solution providers, and other industry participants. A companion report to this thought provoking paper will be published in the near future. It will include comprehensive and detailed research data and insights on many aspects of UBI.

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