UBI market is expected to grow significantly over the next few years

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Usage-based insurance (UBI) is personalizing the previously impersonal business of auto insurance. This business model — also known as pay-per-mile, pay-as-you-drive, or pay-as-you-go policies — enables insurers to charge customers per mile they’re driving or based on their driving behavior, rather than demographic information.

The UBI market is expected to grow significantly over the next few years, driven by the coronavirus pandemic and advances in technology. Globally, it’s expected to reach $125.7 billion by 2027 at a compound annual growth rate of 23.0%, up from an estimated $24 billion in 2019, according to Reportlinker.com.

UBI offers a number of benefits for auto insurers, some of which are passed down to consumers. By adopting such a model, insurers can work to enhance customer loyalty and satisfaction. It also allows insurers to cut costs by reducing payouts for claims and to improve their risk assessments, as they’re able to consider a wider range of data to …read more

Source:: Businessinsider – Finance


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