Discusses the growth of usage-based insurance and how it works through telematics devices to relay driving information to carriers, leading to telematics based rating rather than traditional methods.
March 03, 2020 at 05:26 AM
Thank you for sharing!
Your article was successfully shared with the contacts you provided.
In early 2016, we wrote about telematics, or usage based insurance (UBI), and its effects on the insurance industry. In 2019, the UBI market reached an estimated $24 billion, and projections are that the market will grow to $125.7 billion by 2027.
Usage-based insurance can also be referred to as Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Pay-As-You-Go, and Distance-Based Insurance. All of these terms refer to telematics. A telematics device — also called a black box or a dongle — is a small device that plugs into a vehicle’s diagnostic port, or it may be integrated into the vehicle itself, to track the mileage and monitor the driver’s behavior. A SIM card and modem in the device enables telecommunication of this information via a cellular network.
This premium content is locked for
FC&S Expert Coverage Interpretation subscribers.
Request a Free Trial today to enjoy unlimited access to the trusted solution for successful interpretation and analyses of complex insurance policies.
Trusted, quality content from industry experts with over 60 years insurance experience, combined
Customizable alerts of changes in relevant policies and trends
Search and navigate Q&As to find answers to your specific questions
Filter by article, discussion, analysis and more to find the exact information you’re looking for
Continually updated to bring you the latest reports, trending topics, and coverage analysis
Already have an account? Sign In Now
For enterprise-wide or corporate access, please contact our Sales Department at 1-800-543-0874 or email [email protected].
Get Answers Directly From the FC&S Experts
Submit your coverage interpretation question to the editors of FC&S for quick and reliable information.