Many usage-based insurance (UBI) programs for auto typically claim that policyholders can reduce their premiums by sharing their driving data with insurers and practicing safe driving behavior. However, there's no one-size-fits-all approach to UBI, because the data provided by policyholders and the corresponding value determined by insurers often vary significantly by insurer and program. 

To illustrate this point, consider several hypothetical policyholders as well as the UBI data types and benefits most relevant to them. To obtain a greater benefit from UBI programs, guidelines need to be established to accommodate the often dissimilar needs of a diverse group of potential policyholders.

Hypothetical policyholders

Our first policyholder is the 'Quantified Self' (or 'Selfie'). Selfie keeps up with the latest technologies, competes in online gaming, and posts online commentary. Frugality isn't his most salient personality trait, so Selfie may not find UBI discounts especially compelling. He's interested in receiving insights on his favorite topic (himself) and improving his driving habits from a gaming perspective. He appreciates value-added services, especially when UBI provides those benefits through technologies he owns, such as his smartphone, a wearable, or his connected car.

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