HOW USAGE BASED INSURANCE IS CHANGING THE AUTO INSURANCE INDUSTRY
Posted by Britt Bertolucci Cao
My last post was about 2017 trends we’ve seen in the insurance market. Another trend that has been popping up and will drastically effect auto insurance rates and how they are managed and sold, is UBI, or usage based insurance. According to insurancebusinnessmag.com UBI is expected to increase globally, from 12 million to 142 million customers, in the next seven years.
What UBI means for inbound calling auto insurance customers is, the ability to learn about themselves and how they drive. With the wearable tracking market increasing the use of auto tracking technology will increase as well. Iamagazine.com, writes “auto telematics will improve driver safety and prevent road fatalities. Mobile apps that measure driving skills and offer improvement tips may become more popular as additional carriers offer new UBI programs, safe driving discounts and rewards.” By drivers learning how they drive and how to become safer and with vehicles themselves becoming safer, smarter insurance rates should begin to go down due to insurers not being forced to raise rates in response to distracted driving behavior. It also gives insurers the opportunity to work with drivers to improve their actions behind the wheel helping to reduce overall costs.
UBI is the future for insurance, although it might take a bit of getting used to it will hopefully create better Insurer to customer relationship. Have you had experiences with UBI, how has it changed your business? Let us know if the comments.