Over the next three years, there will be twice as many users of UBI auto policies in the United States and Europe.
According to the latest data from Frost & Sullivan, a business consulting firm, sixty percent of large insurers in the United States are already offering usage based insurance telematics programs to provide discounts to their auto insurance customers who are safe drivers.
The U.S. is seen as the fastest growing market for this type of coverage technology program.
Among those auto insurance companies who are offering this type of program, the UBI devices are typically used to record either mileage or driving behaviors in order to check to see if the driver qualifies for a discount. This usage based insurance data was presented in the Frost & Sullivan report, entitled “Telematics-based Insurance – Two Tiered Proposition is increasingly becoming a key Tool for OEMs to decrease Cost of Ownership Issues for Customers.”
The report also pointed out that the number of usage based insurance customers should double in three years.
In both Europe and North America, there will be double the number of usage based insurance customers in three years that there are today. Furthermore, it is expected that there will be even more significant growth trends, particularly as Europe will maintain its place moving steadily ahead of North America. The research predicts that by 2020, Europe will have nearly 24 million auto insurance telematics subscribers. On the other hand, North America will be just below that number at 20 million subscribers.
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Though these do appear to be quite optimistic figures for the growth of usage based insurance usage, they aren’t as lofty as those that were forecasted by ABI Research in its own latest figures. However, they are pointing in the same direction in terms of subscription and growth.
Telematics in usage based insurance programs have been quite significant in government fleets and is now starting to head in the same direction with auto insurance companies selling to individual customers. In fact, even auto manufacturers are beginning to leverage their own telematics infrastructures in order to partner with insurers in these programs.