Employ UBI Telematics & Connected Vehicle Data to Leverage Exponential Surge in Usage-Based Insurance Demand

UBI telematics lets you choose insurance based on your driving habit. Owing to the growing number of telematics and connected vehicles, increased efforts from the government as well as the boost in demand for greater connectivity and intelligence in vehicles, auto insurance has come a long way from how we knew it.

Catering to modern-day consumers with dynamic requirements, insurance institutes globally have shifted focus to deliver Usage Based Insurance (UBI) models, or are actively looking to make the transition. Markets and Markets predict the Usage-Based Insurance (UBI) market size to reach $66.8 billion by 2026, a CAGR growth of 27.7% from $19.6 billion in 2021.

UBI Telematics Data Acts as the Deciding Force for Usage-Based Insurance

Connectivity comes as second nature to UBI models, letting insurers monitor vehicle and driver parameters, to better serve their consumers with comprehensive coverage along with optimized claim processes. Connected vehicle data & UBI Telematics hold the key to enabling these services with in-depth data and rich insights so that insurers can:

• Maintain deeper relationships with customers and offer personalized plans.
• Provide policyholders with discounts, based on their driving behavior using UBI Telematics
• Let customers pay according to how much they drive when they drive and their driving skills.
• Prevent fraud and scams.
• Increase customer base and reduce losses, to boost overall profits.

Impact of Covid-19 on the Usage-Based Insurance Market

The pandemic had a powerful impact on both drivers and driving trends, disrupting the entire automotive supply chain on a global level and impacting vehicle sales, miles are driven as well as the resulting insurance outlook.

According to Fortune Business Insights interpretation of a US Federal Highway Administration Report, the average number of miles driven decreased by 41% during the pandemic peak, while an analysis by Markets and Markets suggested 14% decline in new vehicle sales at that time. These figures revealed shortcomings in current auto insurance models with vehicles, for the most part, is either parked in garages or operating in limited capacities during the pandemic, forcing owners to think twice before paying premiums in full. Further, insurance experts believe that with the return to the old normal and increase in miles driven, auto insurance rates will once again skyrocket due to major shifts in risk behavior as well as mobility trends.

All these factors gave a boost to the Usage Based Insurance (UBI) industry as a result of vehicle owners looking for more affordable, and in a sense more logical, insurance plans. Research shows 80% of consumers are willing to share their driving data with 21% having already purchased telematics-based insurance solutions for lower premiums, faster claims, and personalized services.

CerebrumX can Help you Utilize Connected Vehicle Data to Unlock UBI Opportunities

At CerebrumX, we are committed to assisting you in developing future-ready insurance products that’ll help pave the path for sustainable driving solutions and safe experiences. We bring the power of the industry’s first AI-driven Augmented Deep Learning Platform (ADLP) to ingest mobility and telematics data from millions of connected vehicles and enrich it using advanced AI signals and data standardization process, to generate predictive insights for you to act on.

Our rich data sets and industry-leading analysis promise cost-friendly operations, limitless innovation, and optimum business productivity. We adhere to global privacy regulations to maintain driver confidentiality and offer a white-label consent management platform, CerebrumX Secure Consent, that can be easily integrated within your brand’s existing web/app architecture.

If you wish to enter the UBI space, or uplift your existing UBI model, CerebrumX has the right data and robust solutions to help you acquire customer market share.

For more information regarding connected vehicle data and the evolving ecosystem around it, Contact us or reach out to our experts.