CAMBRIDGE, Mass.--(BUSINESS WIRE)--The sixth paragraph of this release has been removed.
The corrected release reads:
CONSUMER DEMAND FOR TELEMATICS AND USAGE-BASED INSURANCE AT ALL-TIME HIGH
New Research from Cambridge Mobile Telematics Shows Opportunity for Customizable UBI Based on Driver Safety Rather Than Demographics or Credit
Cambridge Mobile Telematics today launched its 2019 UBI and Telematics Market Demand report, charting the demand for Usage-Based Insurance (UBI). By comparing consumer attitude towards insurance pricing, communication, and value propositions, the report finds that three-quarters of Americans want insurance pricing to be judged on how they drive, showing the opportunity for insurers that foster UBI adoption.
Consumer-facing brands and products have become increasingly focused on tailored or personalized offerings in recent years in response to consumer appetite for bespoke services. Today, more than 50% of customers offered UBI insurance models adopt it, and the vast majority of American drivers (75%) reportedly would like insurance premiums to be based on how safely they drive rather than generic factors such as credit score, demographic information, or vehicle model.
The findings demonstrate that the opportunity for insurers to provide customized insurance models is ripe - almost two thirds (64%) of drivers claim to be willing to download a mobile app (like a Try Before You Buy model) that tracks their driving for a more personalized insurance quote. Today, there is still room for insurers to capitalize on this demand since despite consumer appetite just over a quarter (27%) of respondents have been offered a telematics-informed UBI program. The total penetration of telematics in the U.S. insurance market remains less than 10%-- the two most popular insurance models are discount based and pay how you drive programs.
Technological advancements in mobile sensing, IoT and artificial intelligence today make it possible to deploy new business models and services at scale, both to prevent incidents and to respond more effectively in the event of an emergency. The report finds that the vast majority of consumers are interested in programs that will keep them and their families safer on the roads. Over three-quarters (83%) of respondents claim they would be more interested in an insurance company’s product if it offered tools to keep their families safer on the road such as emergency roadside assistance (78%), and trip-by-trip safe driving analysis (60%).
“We live in a world where consumers have grown accustomed to customizing their purchases and today telematics offers them a solution that not only improves driving behaviors but also better informs risk assessments and customer retention - it’s a huge opportunity for insurers,” said Ryan McMahon, vice president of marketing at Cambridge Mobile Telematics. “UBI programs can reduce costs for the driver as well as risk for the insurance provider so it's a win/win. Today’s technology makes these solutions an easy and affordable way to make the roads safer for everyone.”
About Cambridge Mobile Telematics (CMT)
CMT's mission is to make the world’s roads safer. CMT’s DriveWell platform measures driving quality, scores driving performance, incentivizes safer driving, and provides crash and claims services for insurers, rideshares, and fleets. Since its first product launch in 2012 that pioneered mobile Usage-Based Insurance, CMT has become the world's leading mobile telematics and analytics company with its phone-only and phone+Tag programs. CMT’s award-winning DriveWell platform is used by leading insurers, commercial fleets, cellular carriers, and other organizations in more than 20 countries, improving safety for millions of users. To learn more, please visit www.cmtelematics.com and follow CMT on Twitter @cmtelematics.