PCIT PLUSNews and Updates in the Property & Casualty Insurance Industry – A KMG Initiative

USAGE BASED INSURANCE GENIE – DRIVING THE USER EXPERIENCE

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Do you know; you can now save money on your car insurance? All you need is to become a smooth driver who doesn’t speed through turns or slam on the brakes. And that’s how usage-based car insurance works.

The usage based insurance (UBI) is becoming a mainstream offering for insurance companies. The idea is; you get a discount based on your collected driving data. The safer you appear to the insurer, the less you’ll pay in premiums. The UBI genie relies on a telematics system inside the vehicle that captures the driving behaviour and the risks encountered along the way.

Instead of depending upon generic factors such as age, gender, and type of vehicle to underwrite and price auto coverage, monitoring the driving habits can actually generate more relevant indicators. UBI tracks whether policyholders speed, take turns too sharply, the road conditions they drive in, etc.

So what’s the buzz?

The usage based insurance genie is out of the bottle, driving the user experience and insurance companies are catching on.

  • UBI program allows you to take more control of auto insurance costs by maintaining safe driving habits. Safe drivers tend to get a better deal and rewarded for their superior driving skills.
  • The UBI approach appeals to people and qualifies policyholder for a more significant auto insurance discount. Drive less, pay less; drive more, pay more – which means, you pay for what you use.
  • With UBI genie, you typically have access to your driving performance data. This way, you can know where you may have fallen and tend to drive more safely.
  • Since the UBI device monitors the vehicle’s performance and geo location data, claims are difficult to stage, thereby chasing away fraudsters.
  • Since UBI provides detailed driving data and customer engagement, claims can be settled faster.

A platform for value-added services

Earlier, we used to buy a policy, keep it in our wardrobe compartment and forget about it until we had a claim; when your insurer becomes your enemy. With the UBI model, your insurer is there with you in the vehicle; telling you when you accelerate too quickly, brake too hard and changing lanes too much. The UBI genie allows more insurer’s engagement and partnering with the policyholder to avoid accidents and make him a more efficient driver.

Insurance companies are starting to look at UBI. Those who adopt this game-changing approach, the rewards are immense.

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