Usage Based Insurance (UBI) Global News
The PTOLEMUS research team is tracking important usage-based insurance (UBI) developments on a daily basis, take a look to see what the latest news is in UBI.
To see the latest version of UBI research, the Connected Auto Insurance Global Study, see this link to find out more…
You can also find out more about our quarterly UBI dashboard here.
1 September 2022
Automakers’ pitch: Save on insurance by giving us your driving data
GM and Ford aren’t sharing how many customers have signed on, but they explicitly state customers have to agree to data access before the automakers retrieve it. “People are getting comfortable sharing the data,” Harris said. “As people become more and more comfortable with it and it’s becoming more of a norm, we are starting to really see the growth with it.” GM expects its annual software and services revenue could reach the $20 billion-to-$25 billion range from a projected 30 million connected vehicles by 2030. Part of this growth will come from OnStar Insurance, with projected revenue of more than $6 billion annually.
25 August 2022
Does telematics work for UBI?
Sentiance makes telematics work based on 3 axioms:
– Telematics needs to be about changing driver behavior to make the roads safer. The focus needs to be on identifying risky behavior, not just on reducing the rates slightly for people who exhibit “anticipative braking.”
– Risk is the combination of where and when you drive, how you drive, and how much you drive. The greatest risk is at the intersection of these — speeding on dangerous roads when it’s raining, busy, and dark is much worse than going a little quick on the freeway on a sunny Sunday morning.
– Identifying the worst risks — and pricing them accordingly — is the best way to lower prices for better drivers. In other words, we want to identify people who are more likely to have accidents.
18 August 2022
USAA Among First Insurers to Introduce Crash Detection Technology
USAA announced it implement crash detection technology, an innovation that simplifies and expedites the claims process. This technology comes at a critical time as auto accidents have surged past pre-pandemic levels, exacerbating supply chain issues and delays being felt by consumers across the nation.
The crash detection technology, integrated in USAA’s SafePilot® app, leverages smart phone sensors within the app to detect a possible collision and prompts the member to verify if an accident has occurred.
28 July 2022
Lemonade Completes Acquisition of Metromile
Lemonade launched Lemonade Car a few months ago and to avoid challenges to and disadvantages for new comers in the auto insurance industry due to lack of data, they decided to acquire Metromile. According to a Metromile SVP, “It’s hard to imagine a better home for Metromile than Lemonade. While Metromile was at the forefront of using big data and AI in car insurance, Lemonade forged a parallel path for several complementary lines of insurance. That makes for a powerful combination.”
Bajaj Allianz General Insurance launched its add-on motor insurance cover called ‘Pay As You Consume’ (PAYC). The company was the first to launch ‘Pay As You Consume’ under the Irdai’s Sandbox Regulations. This usage-based motor insurance add-on cover is in alignment with IRDAI’s recent circular to allow PAYC under annual motor products, Bajaj Allianz General Insurance said in a statement.
19 July 2022
Tractable AI takes on claims subrogation for AmFam
Tractable’s AI Subro solution will be integrated into the American Family Insurance’s AFICS (claims services) operations. Subrogation, particularly for auto claims, is the process in which the insurers for each party in an auto accident, pour through evidence including records of damage to vehicles to determine which insurer has to pay out on the claim. Subrogation may be prolonged if the party found liable disputes that finding.
To keep pace with new developments in the insurance market, the Insurance Regulatory and Development Authority of India (IRDAI) has permitted general insurers to introduce the Pay As You Drive, Pay How You Drive and floater policy for vehicles belonging to the same individual owner for two-wheelers and private cars as add-ons in a motor insurance policy. In others words, UBI is now an official product in India, which means it does not face the limitations applied to sandbox products anymore.
Edelweiss General Insurance has launched SWITCH, a comprehensive motor insurance product under Insurance Regulatory and Development Authority’s (Irdai) Sandbox initiative.
Allstate has filed a patent application for technology that would allow telematics-based driving assessment in real time. According to the application for a vehicle-telematics-based driving assessment, aspects of the patent provide effective, efficient, scalable, and convenient technical solutions that address and overcome the technical problems associated with driving assessment systems.
Wejo announced a collaboration with Ford which gives Wejo access to personalised connected vehicle data from Ford vehicles across the continent. This supports the provision of data and insights to insurance providers that leverage user-based intelligence for end-to-end insurance. Insurance providers, in turn, can leverage the data to better understand driving behaviours and to drive efficiencies, including by minimising fraud.
IMS is the partner of Aviva Camada in the launch of Aviva Journey, a new app-based telematics product for the Canadian auto insurance market. Aviva Journey, currently distributed via brokers in Ontario, will help safe drivers significantly lower their premiums. The app is downloadable to a smartphone and customers signing up immediately qualify for a 10% saving on their auto insurance.
This year 2022 US Auto Insurance Industry Study from JD Power found that consumer satisfaction with the price of their policies dropped to 769 (on a 100-point scale), five points lower than the previous year. But participation in UBI programs has doubled since 2016, with this year bringing in a near-record-high 16% adoption. And despite the negative trends in overall consumer satisfaction, UBI policyholders rated their satisfaction 59 points higher than those carrying traditional auto insurance policies.
Car insurance broker 1st CENTRAL has partnered with Cambridge Mobile Telematics (CMT) to launch a new device and app that monitor driving behaviour and offer guidance on making a claim if they detect a crash. The device records journeys and provides feedback and in-app incentives to encourage 1st CENTRAL customers to drive more safely. Each trip is rated with a score and dangerous events such as speeding, phone distraction and harsh braking are highlighted.
Safe-driving scores, mission-oriented challenges, personalized feedbacks, and Carrot-Cash rewards are some of the key features being rolled out in the completely rebuilt and redesigned Carrot’s app. This new app also offers other value-added services and information pertinent to mobility-lifestyle, and the company hopes to grow its user base with the intention of converting them into insurance clients through targeted and experiential marketing.
Swiss Re is expanding the offering of its Coloride solution to include driving data coming from vehicles. It is available as white label or SDK (Software Development Kit) and delivers best-in-class driving behaviour and contextual scoring and analytics. It records every car journey made, mapping out not only the location and the route itself, but also keeping track of risky manoeuvres, smartphone distractions and excessive speeds. Thanks to its new algorithm, it can now collect data coming from connected cars.
18 May 2022
US traffic deaths at 16-year high
New figures from the US National Highway Traffic Safety Administration (NHTSA) show that 42,915 people died in motor vehicle crashes in 2021. This is the biggest number since 2005 – and means that an average of 117 people are being killed on US roads every day. Several types of roadway deaths are up, including pedestrians (up 13%), on urban roads (up 16%) and in speeding-related crashes (up 5%).
Daimler, HDI, Swiss Re and its tech subsidiary Movingdots come together to provide telematics insurance to Mercedes-Benz connected vehicle customers. The partnership aims to foster driving safety and lower insurance costs for Mercedes-Benz customers through the in-vehicle telematics programme InScore.
Tractable, a UK tech unicorn, develops AI to aid in the repair of cars and homes. Its solution enables the accurate calculation of repair costs within minutes. By implementing this Ai to assist and guide its engineers, Aviva will be able to quickly and accurately complete remote assessment of repair estimates and increase consistency of diagnosis.
The majority of US insurers that were surveyed by LexisNexis in 2021 said that telematics will be a part of their core business. 96% recognised they needed to invest in telematics now. 71% of consumers are interested in using their driving data for insurance discounts, but only 22% have actually used their driving and vehicle data for a UBI programme.
CMT announced that it provides the new automatic crash assistance and digital claims services for Germany insurer HUK-COBURG through its Drivewell platform. It leverages signal processing and AI to analyse digital driving data from IoT devices, including smartphones, proprietary Tags, connected vehicles, dashcams, and third-party devices. Car crashes will be automatically detected and reported for organising rescue, which will provide better claims experience for HUK-COBURG’s customers.
25 March 2022
Lemonade Car in Tennessee
Lemonade has launched its car insurance product in Tennessee. The telematics-based product was first made available to Illinois drivers last November, the same month it acquired Metromile.
As part of the agreement, Verisk can offer standardised, insurance-ready telematics data from connected Ford vehicles in Europe to assist insurers with assessing driving behaviour, developing usage-based insurance programmes, and potentially rewarding customers who drive safely with discounted rates. This service will be available in the UK, France, Germany, Italy and Spain.
Otonomo, a leading European VDH, has entered into a definitive agreement to acquire The Floow. The deal is valued at approximately $69 million.
Octo announced a new agreement with Ford to extend its data streaming capacities in Europe. This partnership will further enhance Octo’s telematics services in key European markets, including Italy, UK, France and Germany.
18 February 2022
Ford taps Redtail Telematics as technical partner
Ford has appointed Redtail Telematics as a technical partner. The British TSP will serve as a reseller of connected vehicle data to UK motor insurers.
4 February 2022
Otonomo partners with Audi to test usage-based insurance
Audi has partnered with Otonomo to pilot innovative consumer offerings, including pay-as-you-drive insurance, general vehicle status and first notification of loss.
Travelers is piloting IntelliDrivePlus, a pay-as-you-drive usage-based auto insurance product, in Ohio, Nebraska, and Arkansas.
PSA is launching a TBYB programme for its customers. They will drive 2 months, and then benefit from a discount up to 25%.
Linear Assicurazioni, UnipolSai’s direct insurance branch, is partnering with CMT to launch Drive&Save, Italy’s first Try-Before-You-Buy auto insurance programme. It is a smartphone only programme which allows drivers to earn up to 15% discount for safe driving.
24 June 2021
New UBI launch in Okla. from Mercury
Mercury Insurance is launching MercuryGO, a smartphone-based Pay-How-You-Drive programme, in partnership with CMT. The programme will first be live in Oklahoma before it is extended to other states.
17 June 2021
Cambridge Mobile Telematics Acquires TrueMotion
CMT has acquired TrueMotion, the second largest mobile telematics provider. With this deal, CMT will now offer telematics services in more than 20 countries, including the United States, Canada, Germany, Italy and South Africa.
11 June 2021
Root steers GM drivers to UBI with RootReady
Root is now allowing drivers to use data from connected vehicles to determine their eligibility for its UBI programme through RootReady initiative. Concretely, drivers with General Motors cars bought after 2015 can now opt-in Root’s programme using data their vehicles already collect.
USAA has acquired the American insurtech Noblr and will use the company’s usage-based insurance platform to build a new connected insurance offering.
Through the OnStar Guardian app, customers without a GM vehicle can now stay protected and connected from anywhere. Anyone can now download the app and sign up for the service through the Apple App Store and Google Play.
The Floow has expanded its partnership with Direct Line Group with the launch of DrivePlus, a smartphone-based Pay-How-You-Drive programme. Drivers can potentially save up to 20% on their insurance discount.
10 March 2021
VÍS Launches Car Insurance Priced on Driving Behavior
VÍS has launched Iceland’s first usage-based insurance programme, Ökuvísir, in partnership with CMT. The pricing model of this smartphone-based programme takes into account mileage and driving behaviour.
Carro users in South East Asia can avail tailored insurance policies with pricing reflective of their actual driving behaviour calculated based on the driving behaviour and distance travelled.
13 January 2021
AXA Belgium partners with CMT to launch AXA DriveCoach
AXA’s young driver application is now powered by Cambridge Mobile Telematics and switches from its initial OBD proposition to a smartphone-centric one. The driving behaviour is calculated on the basis of acceleration, speed, braking, turns and distraction.
Ford is focussing on helping insurance carriers use connected vehicle data without the need for aftermarket plug-in devices to inform their usage-based insurance programmes, improve their underwriting process, and pass along driver behaviour discounts to qualifying Ford vehicle owners
The incorporation of Drivit’s technology onto the Zego sense app will enable usage of actual driving data to commercial motor insurance policies’ pricing
Credit Karma, the financial services platform of Intuit, has launched Karma Drive, a UBI platform in partnership with Zendrive and Progressive. Credit Karma members can access a 30-day driving trial, directly from the app, where they will receive continuous real-time, rich feedback on their driving. At the end of the trial period, members are alerted if they qualify for a discount on a Progressive auto insurance policy
The programme uses CMT’s smartphone-centric solution, which allows Hastings Direct to price based on customers’ actual driving style
The new SmartMiles programme bases insurance charges on miles driven and also allows drivers to earn up to a 10% discount for safe driving. IMS also supports Nationwide’s PHYD insurance programme SmartRide which launched in 2011.
The new partnership will be supported by a €5 million investment from Palamon Capital Partners, a private equity firm that invested in FairConnect in 2018.
LB Forsikring, one of the largest auto insurers in Denmark will use driving insights from TrueMotion’s platform to power Bilist+, its smartphone-centric telematics programme. Bilist+ members can save up to 1500kr on their deductible and learn about their driving behaviour
Southern Farm Bureau announced the new mobile UBI offering that rewards a customer for safe driving habits in partnership with Arity leveraging its expertise in insurance telematics through its 400+ billion miles of driving data
Movinx is a 50/50 joint venture that uses car data, including ADAS devices and traffic conditions to calculate and price risk. The first insurance product and service is planned for launch in France in 2021.
By Miles is the first company in the UK to offer real-time pay-as-you-drive insurance, with its policies aimed at those who drive under 7,000 miles a year. Instead of paying a traditional annual premium, customers still get comprehensive cover, but pay a low fixed amount upfront to protect the car whilst parked (protecting cars against theft, accidental damage and vandalism), and pay monthly based purely on how many miles they drive, to cover them whilst on the move. All policies also include No Claims Bonus protection at no extra cost.
14 August 2020
Honda App Links Feedback on Drivers to Insurance Carriers Via Verisk
Honda Motor Co. is offering an app that scores the safety of car owners’ driving habits and links with insurance carriers that can offer discounts to drivers who are deemed a good risk.
CCC Information Services Inc. and Volkswagen Car-Net announced today that CCC has become the automaker’s exclusive provider of insurance telematics services for the newest generation of VW Car-Net which includes model year 2020 and 2021 vehicles.
The DriveView program became available to Volkswagen Car-Net subscribers starting with model year 2020. By enrolling in DriveView, Car-Net users may be eligible for discounted rates from some of the top automotive insurance companies in the country.
IMS has launched a usage-based insurance product for German insurer, ADAC Autoversicherung AG. The programme, ADAC Fahr + Spar, gives policyholders a 10% discount on their premium after app activation and the first 100km recorded is transferred. Drivers can also earn up to 30% of their premium in cashback, based on their driving behaviour (acceleration, braking, speed). The programme is powered by IMS’ smartphone app and IMS’ Wedge beacon (rebranded as DriveDot by ADAC).
25 June 2020
CAA says more Ontario members turning to pay-as-you-go car insurance during pandemic
A non-profit travel organization has seen a spike in the number of members using its pay-as-you-go car insurance, especially over the past few months.
Iveco together with Iveco Capital, Aon and Reale Mutua, have launched a connected auto liability insurance policy based on the pay-per-drive model. The new cover is built for the owners of the Iveco models equipped with new connectivity solutions such as the new Daily and the new IvecoS-Way. The new connectivity solutions put the vehicle in direct contact with the Iveco Control Room, providing a team of experts with real-time data on the performance and health of the vehicle, as well as on the specific way of use by the driver.
The policy provides variable rates based on Iveco’s Safe Driving Index, which reflects the actual use of the vehicle and the assessment of the driver’s driving style. The annual evolution of the rates will reflect the improvements in driving style obtained following the advice of the on-board tool Driving Style Evaluation.
Rosgosstrakh continues to modernise its IT architecture by partnering with Guidewire Software, Inc., a leading IT platform developer for the insurance industry. It is expected that the entire vertical of Rosgosstrakh’s auto insurance will be transferred to work in the target IT architecture in the near future.
With a reduction in daily travail and commuting amid the COVID-19 pandemic, more drivers are considering UBI in a bid to keep their premiums low.
Tata AIG general insurance has launched a telematics-based next-gen application and device ‘AutoSafe’.
With Xemplar’s mobile platforms and smartphone-based telematics for personal and commercial lines insurers, Xceedance will augment its technology capabilities for insurers looking to launch and service user-based insurance (UBI) products.
IMS, a subsidiary of Trak Global Group (TGG) announced a product that enables the implementation of a mileage-based user based insurance product for North American insurers. IMS is expediting the release based on mileage and pay as you drive principles to help insurers emerge with more data and digital-oriented means to assess risk for drivers.
DriveQuant has launched its library of driving analytics services, DriveKit. DriveKit includes several SDK and API modules to transform any mobile app into a telematics and driver coaching device.
The Insurance Regulatory and Development Authority of India (IRDAI) has proposed a hike in compulsory third-party motor insurance premiums, for the financial year 2020-2021. The exact increase varies by the category of the vehicle.
N2G will exclusively promote, distribute and administer insurance solutions for multi-national exposures on behalf of both organizations. Business to N2G will be sourced through independent agents, brokers and wholesalers. Nationwide will assume U.S. risk exposures and Generali (directly or through its partners) will assume non-U.S. exposures.
Metromile has announced that Tokio Marine Group has deployed its product Metromile REPORT, across its $13 billion auto insurance book. Tokio Marine Group expects the product to improve customer claims, as customers can easily report accidents online and through an app.
28 January 2020
kasko2go partners with general insurer die Bayerische to launch a new user based insurance programme in Germany
kasko2go, an eco-system provider that uses AI and telematics big data assessments, has partnered with general insurer die Bayerische with plans to launch user based insurance in Germany, following the successful launch with Dextra, a subsidiary of die Bayerische. The product gives discounts of up to 50% on traditional car insurance, where premiums are calculated based on mileage and safe driving.
23 January 2020
Car rental company Avis Budget Group set to connect more than 22,000 Fiat vehicles in Europe, and gather telemetry data from the vehicles
Avis has entered an agreement with Fiat Chrysler Automobiles (FCA) to connect more than 22,000 Fiat vehicles from Avis Budget Group in Europe. Telemetry data from the connected vehicles will be gathered in real-time, including mileage, fuel level, and updates on the mechanical condition of the car. Avis Budget Group’s fleet managers can also process information more readily, improving their operations.
13 January 2020
ERGO Releases ‘Safe Drive’ Telematics Insurance Proposition Using The Floow’s FloowDrive Solution
ERGO launched a new telematics insurance proposition, Safe Drive. Consenting drivers are provided with an upfront discount of 10% along with a provision to get good driving habits rewarded with further discounts.
13 January 2020
Cambridge Mobile Telematics announced the launch of Claims Studio
CMT claims that Claims Studio, will speed up claim processing times and streamline the accident reporting system. It uses the existing telematics technology to automatically write narrative accident reports when it detects a crash. Insurers thus spend less time collecting information from drivers and third parties, and more time confirming facts and accurately assessing loss.
19 December 2019
Insurer HDI and telematics service provider Vodafone Automotive partner to create HDI Insieme, a telematic policy
Insurer HDI and telematics service provider Vodafone have partnered to create HDI Insieme, a telematic policy that offers greater protection to motorists through the evaluation of driving style and vehicle usage. HDI Insieme utilises Vodafone Automotive’s on-board telematics technologies and comes with a dedicated app for users.
16 December 2019
Smartsurance, a Hungarian technology company, has launched its app-based, pay-as-you-drive insurance, Cristo
Cristo is an app by Smartsurance, providing pay-as-you-drive insurance to the Hungarian market. Smartsurance aims to use modern technology to simplify, speed up insurance and claim settlement, and promise fairer operation thanks to the Pay As You Drive principle, using a telematics tool.
4 December 2019
OCTO Telematics to move into vehicle diagnostics with the acquisition of Nebula Systems
The Nebula Systems diagnostic solution grants deep access to vehicle data which gives OCTO the flexibility and ease of access to by using a unique VIN-specific configuration. This could have a substantial impact on fleet managers using the OCTO Fleet Telematics solution.
27 November 2019
Insurance Regulatory and Development Authority (IRDAI) has proposed the implementation of telematics insurance
A pilot has been set up to evaluate the current point system for traffic violations implemented by states and evolve standard point system considering each traffic violations the system of ‘pay as you drive’ and ‘pay how you drive’ covers based on data gathered from the insured vehicle and its driver — for motor vehicles.
28 October 2019
ALD announces a new telematics insurance solution in France
ALD Automotive has launched two new services in France at its recent BlueFleet event at the Autodrome of Linas-Montlhéry. ALD Automotive will use driver behaviour data to adjust the insurance premiums of its customers while renewing contracts.
18 October 2019
Swiss Re reveals to launch Coloride, a new UBI programme with Pioneer
Coloride will provide real-time driver warnings based on Pioneer’s map data and ADAS algorithms. The product can also be extended to a range of devices that collect acceleration data to identify and reconstruct an accident. Some of the devices feature an emergency button, which allows a driver to call for support following a traffic accident.
13 September 2019
Vodafone Germany starts to cooperate with Emil to launch mobile telematics insurance
Emil scheduled to launch a pilot in October and offer up to 20% discount through the Vodafone app for consenting customers
13 September 2019
Korean insurance development institute(KIDI) is developing an AI-powered claims management system
The platform is expected to use images from car accidents to estimate the repair cost, improve the insurance claim process and reduce consumer complaints.
22 May 2019
Vivo and Generali launch pay-as-you-drive auto insurance
Brazilian operator Vivo has partnered with Generali Brasil Seguros to market a personalized and flexible monthly car insurance. Through an application, Smart Auto evaluates the driver’s driving style and generates a discount for the contracting of car insurance. The good driver can be rewarded with an up to 30 percent discount on the price of their insurance.
21 May 2019
Customer in the UK are cancelling the insurance policies that they could not afford
Close to 20% of car insurance policies were cancelled in the London area in the past three years.
21 May 2019
Government fleet of California is going to get telematic supply from Geotab
This telematics solution will be available across all states.
20 May 2019
Telematics carriers in the USA have stopped selling users’ location data to aggregators
AT&T, Sprint, T-mobile and Verizon announced they are no longing selling users’ location data to aggregators.
20 May 2019
ERM advanced telematics developed a telematics box(StarLink EV) use for electric vehicles
This device has a backup battery and could analyse driver behaviour and identify accidents.
20 May 2019
Metroline and Turo partner together for a new pay-per-mile programme
40% of Turo’s hosts live in Illinois, California, Washington, Oregon, Virginia, New Jersey, Arizona and Pennsylvania.
17 May 2019
Kasko2go’s UBI app can reduce the motor insurance premium up to 50%
This app uses blockchain technology to analyse driver behaviour and in the same time protect the user privacy.
17 May 2019
Motor insurance in Chicago’s cost differ by ZIP code & gender instead of driving record
Homeowners have less premium cost than the renters.
16 May 2019
TrueMotion & Unipol partner together to launch 1st smartphone-only UBI programme
Online motor insurance of Unipol group Linear Assicurazioni is launching the first smartphone-only UBI program BestDriver with TrueMotion.
16 May 2019
Allstate launches a new telematics app in Canada
Allstate is planning to launch its “personalised app for the modern driver” app.
16 May 2019
Cambridge Mobile Telematics’s new report suggests that a majority of Americans would like to have their insurance premiums based on safe driving habits
According to this report, 75% of US drivers prefer lower insurance premiums by safer driving behaviour.