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Usage-Based Insurance (UBI) in the Automotive Sector
The usage-based insurance (UBI) or insurance telematics market continues to experience strong growth, with Europe and North America remaining the primary regions for these programs and active policies. Berg Insight estimates that the total number of insurance telematics policies in force in Europe reached 13.0 million at the end of 2023. The number of policies in Europe is expected to grow at a compound annual growth rate (CAGR) of 6.2%, reaching 17.6 million by 2028. In North America, the total number of insurance telematics policies is forecasted to increase from 17.9 million at the end of 2023 to 26.3 million by 2028, representing a CAGR of 8.1%.
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 10% 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) | |
Octo Telematics | Global | |
Cambridge Mobile Telematics | Global | |
Insure The Box | UK | |
The Floow | UK, Italy, USA, China | |
Targa Telematics | Italy |
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. |
Learn more about the Automotive sector and Customer Insights.
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