There now are 20 million active usage-based insurance (UBI) policies around the world, according to the PTOLEMUS Consulting Group.
“Initially a niche product in the auto insurance market, UBI has become mainstream,” PTOLEMUS said in a news release. “In over 10 years of evolution, it has grown to cover all customer segments using countless value propositions and six different device categories.”
Today, UBI has entered a new phase, as it integrates with and powers insurers’ mobile strategies. Four million smartphones now are used in UBI and try-before-you-buy programs, according to the consulting firm.
The impact of smartphone apps is most visible in China, where changes in regulation have opened up the UBI market virtually overnight, creating an estimated 1.8 million smartphone insurance policies.
Germany and Italy are the fastest-growing markets for UBI, while more mature markets such as Italy and the United States are lagging behind.
However, there’s still plenty of room for growth: Only 5 percent of Americans have UBI policies today, according to PTOLEMUS.
More details concerning the evolution of the UBI market can be found within the firm’s quarterly UBI dashboard. The forthcoming “Mobile Insurance Global Study,” to be published in September, also will cover the latest UBI trends.