In 2017 the usage based insurance Market (UBI) has grown by 26% thanks to about 280 insurance companies around the world. In the most common cases, vehicles have GPS device installed, which provides complete information regarding the behavior of the driver as well as the state of the vehicle. The driver’s behavior is a key element when assessing the risk, based on which the price of the insurance is determined. This method of price calculation is becoming more and popular, with the number of UBI reaching 17.4 million in 2017.
Currently, usage based insurance is most popular in the USA, where three insurance companies - Progressive, Allstate and State Farm hold 35% of the global UBI market. With the active help of insurance companies Generali and UnipolSai, Italy is the second country with the most widespread UBI insurance. The market penetration there is among the highest at 15% for 2017. The idea for such innovative insurance products from the type ‘pay how you drive’ and ‘pay what you drive’ has reached other countries such as Luxembourg, Poland, Tunisia, Guatemala, Malaysia, the Philippines and Malawi.
In Bulgaria, UBI insurance is now also available, thanks to Viasat Technology. As a part of Viasat Group - one of the biggest independent telematics groups in Europe, having installed more than 2 million GPS devices in the insurance telematics industry, our company is amongst the first in the country offering a working UBI solution for insurance companies. With it insurance companies receive the ability to:
- Record statistical information about vehicle use;
- Record accidents and their context;
- Receive distress calls (SOS)
- Locate stolen vehicles;
- Offering medical and repair services;
- Transmitting and storing information in the operative centre and many others.
The advantages of applying UBI for insurance companies are very significant. Amongst them are:
- Reducing the number of incidents on the road;
- Reducing the number of damage claims;
- Increasing the solve rate of insurance fraud;
- Reducing the value of paid requests and requiring more expensive insurance policies for risk drivers;
- The ability to locate stolen vehicles and others.
Last but not least, the users also receive a number of benefits from using a UBI policy such as: the ability to send an instant signal in case of an accident, fast localisation of the accident and timely contacting of medical and repair services in case of need. Responsible drivers also get lower premiums and receive incentives.
TO RECEIVE MORE INFORMATION ABOUT VIASAT TECHNOLOGY’S UBI SOLUTION, CALL US AT +359700 1 49 49.
Source: PTOLEMUS Consulting Group.