Strategy Meets Action (SMA), an insurance strategic advisory firm, announces a new research report, "Usage Based Insurance/Telematics: A Catalyst for Change" with results of a survey of North American property and casualty insurers indicating that 75 percent of insurers believe usage-based insurance (UBI) will fundamentally alter the auto insurance industry between now and 2020.

"Insurers have been experimenting with telematics for 15 years. Now, telematics is rapidly gaining momentum, and every auto insurer should be thinking about their plans for telematics and usage-based insurance," says Mark Breading, co-author of the study and SMA Partner.

Co-author Richard Welch of REW Consulting sees the industry nearing a tipping point. "Telematics is going to have a profound effect on the auto insurance business," says Welch. "Even if consumer adoption is in the low end of the consensus range, usage-based insurance will grow rapidly, and as it grows, the traditional market will shrink, making it very difficult for companies not playing in the usage-based segment to maintain market share."

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