Awareness and enrollment in usage-based insurance (UBI) programshas plateaued, according to the LexisNexis Risk Solutions' "Usage-Based InsuranceStudy," and it's time for insurance carriers to rethink theirapproach to UBI programs. In 2015, about 39% of consumersare aware of UBI programs, up one percentage point from the yearprevious, and up three percentage points from 2013.
In addition, just 5% of drivers are enrolled in UBI programs—thesame percentage as 2014.
"Historically in the U.S., usage-based insurance has beendefined as a program to reward good driving behavior withdiscounted insurance premiums, however, offering a premiumdiscount is becoming less attractive to drivers and lesssustainable to insurers," says David Lukens,director, telematics, at LexisNexis RiskSolutions.
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