Usage-based insurance (UBI) continues to thrive in Europe, spearheaded by widespread adoption in the U.K. and Italy, while in the U.S., UBI lags behind its European counterparts, despite efforts from insurance firms such as Progressive.UBI continues to evolve, as well, changing from a pay-as-you-drive (PAYD) model to more of a pay-how-you-drive (PHYD) mechanism that includes input from driver behavior monitoring services built in to today’s Internet-connected automobile technologies. UBI is trying to overcome the traditional biases inherent in such proxies as age and gender by treating drivers as individuals and having them pay for risks they actually take, but UBI uptake may be slowed as insurance companies figure out how to collect and share data in an open, responsible manner.
For additional coverage, go to http://www.abiresearch.com/press/3924-Europe+to+Lead+Insurance+Telematics+Market%2C+with+More+Than+44+Million+Subscribers+by+2017
