Wednesday, June 20, 2012
Europe To Lead Pay as You Drive Insurance with 44 Million Subscribers by 2017
The number of insurance telematics users in Europe will grow from 1.5 million in 2010 to 44 million in 2017, initially driven by the UK and Italy, according to a report from market research firm ABI Research. Despite aggressive efforts from Progressive, North America will continue to lag behind the European usage based insurance (UBI) market.
Vice president and practice director Dominique Bonte comments, "While insurance telematics or usage based insurance (UBI) is far from a recent phenomenon, renewed interest in this market has been observed from both established players and new entrants with uptake accelerating and the very nature of UBI changing dramatically from pay as you drive (PAYD) to pay how you drive (PHYD) based on continuous driver behavior monitoring and analysis."
ABI says that while the fairness principle of UBI to treat customers as individuals and have them pay for the risks they are actually taking, it remains to be seen whether established insurance companies will back a more open, transparent approach as it relates to data collection and sharing which might slow down the uptake of UBI considerably.
ABI Research's study, "Insurance Telematics," covers the different solutions for insurance telematics including PAYD and PHYD across different form factors such as embedded, portable, and converged in North America, Europe, Asia-Pacific, and the Rest of the World. It includes detailed descriptions of market drivers and barriers, as well as shipment, subscribers, and discount forecasts.
Copyright 2012 CollisionWeek (www.collisionweek.com) – reprinted by permission from the publisher