IMS Blog

Consumer Interest in Usage-Based Insurance Growing, Survey Shows

A new report finds that consumers are becoming more interested in usage-based insurance (UBI) policies. According to the report, insurance agents are receiving more inquiries about UBI policies than ever before.

Specifically, the report, which is called the 2015 Vertafore Agency Sentiment Survey, found that client inquiries are up for nearly 60 per cent of independent insurance agents. Additionally, more than 60 per cent of these agents said they expected interest in usage-based insurance to increase further over the next year.

Agents themselves remain generally optimistic about usage-based insurance, with half of all agents saying they expect UBI policies to have a positive impact on their business. At the same time, only about one in ten agents said they worry usage-based insurance programs will negatively affect their business.

Interestingly, larger insurance agencies are more hopeful about UBI. Vertafore’s survey shows that insurance agencies with less than $1 million in revenue are more likely to express concern about the rise of usage-based insurance when compared to agencies earning over $10 million in revenue.

For his part, Deloitte analyst John Lucker sees UBI having a hugely beneficial impact on the insurance industry. Specifically, he says agencies can use the data collected through UBI to learn more about their consumers and build better products.

“Carriers could potentially use UBI data to study the correlation between driving behavior and their risk in the life insurance space or other line of insurance,” Lucker said. “For multiline agents, the opportunity to use this data as a potential predictor from a marketing perspective – that’s something that’s being explored right now. It could be a crossover mechanism for other products.”

White Paper – Comparing Mobile Apps, Hybrid Bluetooth and OBD-II

White Paper – Comparing Mobile Apps, Hybrid Bluetooth and OBD-II

DOWNLOAD