The Usage-Based Insurance (UBI) market has now reached over 60 million customers across 450 active programmes – a sixfold increase in just ten years. PTOLEMUS Consulting Group, which predicted the “uberisation” of insurance in 2015, highlights this transformation in its new report.
UBI is now a truly global phenomenon that reaches 59 countries and generates more than €50 billion in premiums, finds the consulting firm in its new report.
This growth reflects the growing smartphonisation of the business. Insurers increasingly embed UBI into their corporate apps, making it a central part of the customer experience.
At the same time, UBI has evolved beyond simple Pay-As-You-Drive (PAYD) or Pay-How-You-Drive (PHYD) models. It is now a proven tool for reducing the frequency and severity of claims, delivering measurable savings to both insurers and policyholders.
Frederic Bruneteau, Managing Director, said: “Whenever insurers propose attractive UBI programmes, customers prefer these to traditional flat-rate, proxy-based offers. As the cost of telematics has become negligible and the benefits more tangible, we expect more and more insurers to make it the central part of their digitalisation strategy.”
PTOLEMUS predicts that by 2035, 180 million vehicles globally will be insured with telematics policies, generating more than €200 billion in premiums for insurers.
Leveraging 65 interviews and the experience from 100 consulting projects, the 1,350-page report includes an analysis of 41 UBI implementation successes and the evaluation of 32 suppliers. Finally the study analyses the progress of telematics in 59 countries from Argentina to the USA and forecasts the market development until 2035.
The free abstract, featuring interviews with 5 leading industry figures, can be found on www.ptolemus.com.
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