Usage Based Insurance (UBI) Model
Usage Based Insurance (UBI) is a turnkey telematics-based solution for automobile insurance, whereby the cost to insure a vehicle is dependant upon its usage. Under the Usage Based Insurance (UBI) model, insurance rates are based on vehicle usage and driver behavior, rather than the conventional model.
In its simplest form, Usage Based Insurance (UBI) programs can be based solely on mileage metrics, whereby the cost to insure the vehicle is dependant upon its usage.
However, Usage Based Insurance (UBI) can be based on any number of driving metrics, including when (time), where (road/route/highway), and how (distance/speed/aggressiveness) a vehicle is driven.
Critical to any Usage Based Insurance (UBI) model are issues regarding the privacy of each policyholder’s personal information and the security of data during collection, transmission and storage.
Our solution ensures confidentiality by employing superior technology and military-grade data encryption, consistent with international standards.
Recent reductions and limitations in availability of rating variables have shifted market attention in North America, forcing Usage Based Insurance (UBI) programs to the forefront. A number of pilot programs are already in effect in the United Kingdom, South Africa, Japan, and the United States.
As Usage Based Insurance (UBI) programs continue to gather momentum and build popularity, latecomers will begin to see the effects of negative selection, with their most valuable customers migrating to companies who have already adopted the solution.
Under the Usage Based Insurance (UBI) model, the driver now has the ability to directly influence their insurance tomorrow, by how safely they drive today.
