The usage-based insurance market has grown by 26% in 2017 according to latest UBI market update by PTOLEMUS. The main points of the report are mentioned below:
- Motor insurance policies priced based on observed risks have continued to multiply in 2017, with the global market growing at an average 6% per quarter, reaching a total of 17.4 million policies.
- Growth has been led by the 3 pioneering US carriers Progressive, Allstate, and State Farm. Combined, they represent an impressive 35% of the global UBI market. Italy remains second with UnipolSai and Generali still ahead in the only country where UBI penetration is above 15%.
- With over 30 new programmes, Europe is still where most of the activity has been seen over the last year.
- Connected insurance has also reached many new insurance carriers, in countries as diverse as Guatemala, Luxembourg, Malawi, Malaysia, Mexico, Philippines, Poland, and Tunisia.
- Dedicated hardware devices still account for the large majority of UBI delivery models; out of more than 50 new programmes launched worldwide in 2017, only 37% are using the smartphone as a sensor.
- The report claims that the momentum around mobile UBI will continue and that adoption rates will accelerate, although dedicated devices, such as black boxes and OBD dongles, will remain dominant in the medium term. This is reinforced by the growing range of hardware types used for data capture, ranging from cigarette lighter adaptors devices to connected dashcams.
- The progression of smartphone as a sensor has however promoted one service provider (TSP) above all else Cambridge Mobile Telematics, who in 2016 was not even ranked in the UBI dashboard, has now taken the second place by volume behind Octo Telematics, which remains the clear leader in this market with 40% global market share.
- Finally, alongside the evolution of mobile insurance capabilities, there has been (invisible but rapidly progressing) emergence of insurance services based on vehicle manufacturers’ data.