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Usage-Based Insurance (UBI) Research Results for Consumer and Small Fleet Markets 2014

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A 2014 LexisNexis® study shows 18 percent of consumers and 27 percent of small fleet managers are likely to sign up for usage-based insurance (UBI) to receive a 10 percent discount. Clearly, UBI can help carriers attract more customers. This 2014 UBI Research Results whitepaper provides insights into UBI adoption and the implications for your business.

Insurance telematics—otherwise known as usage-based insurance (UBI)— currently accounts for just two percent of US personal lines auto insurance policies. However, within five years, UBI policies are projected to capture 20 to 30 percent of this market. When viewed along the product adoption curve, it is clear that consumer UBI is still on the far left of the curve, with the innovators and tech enthusiasts.

While UBI is still establishing its foothold in the United States, it is further along the product adoption curve in the United Kingdom—one of the most competitive auto insurance markets in the world. Over the past three years, UK insurers have increasingly adopted UBI to enable, among other benefits, more accurate rating and pricing.

This study examines the awareness, perceptions and interest in UBI programs in personal and small fleet commercial lines in the United States.
Infographic

2014 Usage Based Insurance Study Infographic