Since 2012, the market share of usage-based insurance (UBI)policies has doubled, indicating that UBI is a rapidly expandingphenomenon, according to strategy consulting firm PTOLEMUS. The2013 UBI Global Study provides nearly 800 pages of analysis andrecommendations based on interviews with industry players. Thestudy aims to address the impact of telematics on the insurancesector, identify challenges facing insurers entering the UBI fieldand the current state of the UBI market.

Telematics is an expanding sector of the insurance industry,representing more than 5 million drivers, and is expanding on theglobal level. In the last 18 months, 170 UBI programs have beenestablished.

The study found that the UBI market is moving towardsglobalization. Already firmly established in the U.S., UnitedKingdom and Italy, the study estimates UBI will represent morethan 100 million policies generating more than $80 billion inpremiums by 2020. The U.S. leads market growth, but new markets inLatin America and Russia are expected to emerge in the comingmonths.

The study's key findings suggest ways in which agencies cancollect big data in a cost-effective way. Data reliability,quality, and completeness, as well as analytical interpretation isimportant for efficiency. Research indicates that the smartphonewill increasingly become an effective entry-level device to collectdriving behavior data.

The study indicates that the black box will continue to be theleading technology that drives the value-added services market.PTOLEMUS also asserts that BD dongle solutions will remain dominantin the U.S., although emergence in Europe in the coming year isexpected, particularly in low-premium markets.

In terms of industry outlook, the study predicts the emergenceof new models that focus on driver benefits and management claims.Premium discounting will only represent one option.

On a global scale, governments and regulators look to telematicsas a way to reduce traffic and CO2 emissions.

Including 38 case studies, 360 charts, 56 applicable patents, 20country profiles, and 10-year forecasts, the 2013 UBI Global Studyreport provides a detailed analysis concerning the state of thecurrent state and future outlook for the UBI market.

To provide agents and brokers with a comprehensive look at UBIfrom a global perspective, PTOLEMUS is offering a free download ofthe 2013 UBI Global Study's abstract on theirwebsite, and though it only consists of a fraction of theinformation, the abstract is over 100 pages in length.