Telematics/Usage-Based Insurance: Implications for Agents

An SMA Research Brief

Mark A. Breading, Partner
Richard Welch, Guest Author
Publication Date:
June 12, 2013
Number of Pages:
$995.00 USD

Much has been written about the implications of usage-based insurance for insurance companies and consumers, but little attention has been paid to the implications for agents. This research brief, the fourth in SMA’s Telematics/Usage-Based Insurance Series, reveals the distinct differences between the attitudes of agents and insurers regarding how UBI will affect their business. 

Summary of Research Brief:

This brief recaps the current state of the North American market in terms of the leading insurers offering UBI and what their approaches are to the marketplace. The brief then addresses whether UBI presents an opportunity or a threat to agents and brokers. SMA research data shows that insurers have a general optimism about the potential and growth of the market, while agents have a number of specific concerns and tend to see a slower ramp up. The study covers agent and insurer attitudes regarding product and sales opportunities, education, commissions, and more. The research brief closes with a set of recommendations for agency companies planning to move into the UBI market.