First there was UBI, promising to drop auto insurance premiums by 10-15 percent.
Then came driverless cars to drop them again, this time by as much as 40 percent.
UBI has been around for some years now; driverless cars, not so much. They’re only now poised on the verge of the market. Yet both innovations represent a blow to insurance premiums, and here in that fleeting moment between the old one-two, it’s fair to wonder how the industry is going to respond.
Memory isn’t a concrete thing. It’s pliable. Even if you experience an event directly, as soon as you tell the story, the original version of events is just slightly altered. You experience it all over again, this time with new feelings, new thoughts, which causes the story to shift a little every time you remember it. Most of the time, the flexible nature of memory isn’t much of a problem. But when a collision occurs, it’s kind of important to remember the details correctly.
Are usage based insurance discounts sustainable? Maybe not. According to a 2015 study on usage based insurance by LexisNexis, there’s something else that drivers want more.
The insurance telematics industry is moving fast. This was quite apparent at Insurance Telematics USA in Chicago earlier this month. Just one year ago, the main topic debated was whether insurers should use smartphone apps or OBD hardware to track drivers’ behavior. This year, that question was no longer a question. The industry has moved forward with smartphone telematics adoption.
While the media is wrapped up in Tesla's earnings and "ludicrous" speed upgrades, there are companies changing the way that drivers buy, sell and even ride in their vehicles. Continue reading in Inc Magazine.
Most people can use some objective advice once in a while, especially if it has to do with their driving skills -- not only because it helps for better roads, but also because few people enjoy taking advice about it from their peers. Continue reading in Venture Beat.
According to estimates from the National Highway Traffic Safety Administration, 32,675 people in the U.S. died in motor vehicle traffic crashes in 2014. Countless technologies have flooded the market to help drivers avoid those accidents.These include mobile apps that disable talking and texting while driving, and systems built into newer Honda Accords and BMW Series 7s, among others, that give drivers a lane-departure or collision warning. Continue reading in Wall Street Journal.
Avoid accidents for a couple years, get a discount on your car insurance. The safe driving reward has been a staple of the insurance industry for years. And as more cars come with OnStar and other communications tools built-in, the way insurers can track and reward safe driving has gotten more sophisticated. Continue reading in Forbes.
It started with just a few innovative brands, changing the way insurance was done. But now, usage based insurance has taken the industry by storm. ABI Research projected that telematics subscriptions will make a mind-blowing leap from 5.5 million in 2013 to 107 million in 2018.
Driveway Software and Pinnacle Actuarial Resources teamed up to offer the auto insurance industry a coordinated usage-based insurance (UBI) approach that includes driver behavior scoring. Continue reading in Insurance Journal.