NU Online News Service, Dec. 22 10:21 a.m. EST
Personal-auto insurers that are at the forefront in offering usage-based insurance products will gain "a significant competitive advantage" in pricing and policy retention, while companies that don't offer such products may face adverse selection in the future, according to Moody's Investors Service.
In its Weekly Credit Outlook, Moody's says, "Adopting UBI [usage-based insurance] sooner rather than later will not only attract better drivers willing to participate, but will also allow carriers to build and maintain a database on numerous variables that influence loss costs."
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