Filed Under:Carrier Innovations, Analytics & Data

All About the Money: Interest in UBI Grows on Savings Potential

A new survey shows most consumers—79 percent—are willing to consider the concept of usage-based insurance (UBI), and if insurers can guarantee that premiums would not increase, 89 percent report they would give UBI a try.

“UBI is a value-added service and consumers want that,” says Len Llaguno, a consultant for global professional services company Towers Watson, which conducted the survey.

Sixty percent of those interested in UBI programs report they would be willing to change their driving behavior. This was highest among younger drivers (76 percent), who represent the largest risk segment. When asked how they might change their driving behavior if a UBI device were to be installed in their car, respondents listed sticking to the speed limit (71 percent), keeping a safer distance from other vehicles (52 percent) and driving more considerately (49 percent) as the leading adjustments.

“Clearly, there is an appetite for behavioral change features,” said Harbage. “The next big step for insurers to capitalize on this knowledge is to better understand consumers’ driving behaviors so they can subsequently develop an effective way for delivering timely and relevant feedback to the insured. This could very well have a big impact on the riskiest driver set, resulting in safer roads for everyone.”

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