3 reasons why insurance carriers should consider usage-based insurance products

1. Reaching different demographics and regions

In the beginning, the most developed telematics markets were the UK, Italy, and South Africa. Every region has its unique reason to start implementing telematics technology into cars and insurance products. UK's younger drivers had problems proving their insurers there were good drivers with insignificant risk, so the price of their policies was astronomically high. With telematics technology, that price went down by 20-30 percent. That way, insurance based on telematics technology got a lot of momentum in the UK and Europe among young drivers. Italy and South Arica had a problem with car theft and used the technology to track stolen vehicles. Also, the government in Italy issued a special regulation that gave a significant boost to the industry, so implementation was made more accessible and quicker.

As you can see, even then, telematics insurance products were created for a broader audience. With further development and introduction of usage-based insurance, the reach got precise and personalized. No matter where you are, with a little bit of research and feedback from Try Before You Buy Products, you can efficiently market UBI products meant for your client base.

2. The growing need for usage-based products

From Blackbox and OBD devices to smartphone-based UBI products, telematics technology follows trends and adapts to the user. And according to Delloite, the user is not only comfortable but starting to demand usage-based products! This type of product is benefiting both sides. The companies get insights into customers' habits and need to create personalized products at the perfect time. Users are getting more control over their spending and feel better knowing they spend only on products and services they use.

3. Reducing risk and changing behavior

The perfect scenario for any insurer has good drivers as minimal risk clients! As we all know, that just is not possible, but usage-based insurance products are on a mission to turn bad drivers into good ones. With different engagement and communication tactics, smartphone-based UBI solutions give insights to your clients about their driving skills and habits. Our scoring model tells them if they are speeding, idling, or stepping on the breaks too hard. They get badges for achievements and challenges with prizes to make things interesting.

And you? Insurance carriers get insights into their client's habits, can efficiently cross-sell and up-sell products and get easy access to them with different communication channels like email, in-app notifications, push notifications, and more.

So, what to do now when you have all this information? Easy, just contact us, and we will let you know how you can increase your client base and make the existing ones happier with usage-based insurance products.

Fill out the form with any questions you might have, and our team will get back to you ASAP.

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