A new infographic from consulting firm Ptolemus highlights many of the advantages associated with switching from a traditional automotive insurance program to a usage-based insurance (UBI) plan.
Usage-based insurance plans are now being offered by several North American automotive insurance providers, while a recent study by Towers Watson revealed that a growing number of Canadians are interested in making the switch to a UBI program.
Typically, UBI programs involve insurance companies providing clients with a tiny device that plugs into their vehicle. This device then wirelessly transmits information about driver behaviour to the insurance company. Tracked information includes acceleration, braking, and cornering speeds but can also involve distance traveled and time of day. The goal is to produce an insurance premium that more accurately reflects driver behaviour.
Ptolemus’ infographic reveals just how popular UBI programs are becoming around the world. As you can see below, it shows that there are currently 160 active UBI programs in 34 countries, with an estimated 5.5 million UBI policies in the world. The infographic also provides a number of useful predictions, including UBI market penetration by 2020.