The benefits of insurance telematics and UBI products are well known to the insurance industry, but the consumer is yet to be entirely convinced by the value propositions of these products. Increasing the adoption rates of telematics and UBI products is the biggest challenge the industry faces. This in-depth report will analyse the most successful models and value propositions in the industry and show you how to refine your marketing to increase the adoption of your product. With a combination of qualitative and quantitative data, this research report will provide unique analysis on how to build successful insurance products to increase adoption rates.
Key areas covered:
- Trends in insurance telematics and UBI
- What are the consumer barriers? Why do they exist? How do we overcome them?
- The Value proposition - what are the most effective VPs on the market? How were they developed? What works where?
- The optimum VAS/discount mix
- The companies leading the way - what are the facts and figures behind their success?
- Overview of the UBI and insurance telematics industry globally
Your key questions answered:
- Where is the insurance telematics industry at currently?
- How do people view the biggest issues?
- Is it solely a marketing issue?
- What are the adoption rates?
- Who is driving innovation in insurance telematics and UBI products?
- Who are the top 5 companies (for US and Europe) in this space? What can be learnt from their models?
- What are the findings of our consumer survey? What are the main objections? Why won't customers take up UBI and Insurance Telematics products?
- What are the suggested solutions?
Companies Who Contributed:
- Tim Marlow, Head of Autonomous and Connected Vehicle Research, Ageas UK
- David Lukens, Director, Lexis Nexis
- Mark Godfrey, Head of Sales and Marketing, RAC
- Luigi Barcarolo, Head of Telematics Competence Center, Generali
- Roberto Polli, Global Head of Insurance Telematics, Vodafone
- Aldo Monteforte, CEO, The Floow
- Nino Tarantino, CEO, Octo Telematics
- David Pratt, General Manager - UBI, Progressive
- Robin Harbage, Director, Towers Watson
- Simon Ralphs, CEO, Telematicus
Table of Contents
- Industry reviews
- Thought leadership
- Index of figure and tables
- Executive summary
1. Today's insurance telematics and UBI landscape
- 1.1. Overview
- 1.2. Adoption rates for UBI and insurance telematics globally
- 1.3. The more established markets
- 1.3.1. Italy
- 1.3.2. United States
- 1.3.3. United Kingdom
- 1.4. Emerging markets and segments
2. O bstacles and challenges ahead
- 2.1. Don't miss the boat
- 2.2. Narrow value proposition
- 2.3. Consumer awareness and poor marketing
- 2.4. Providing added value
- 2.5. Lack of data
- 2.6. Missed opportunity
- 2.7. Make it easy for the consumer
- 2.8. Limited shopping rates
- 2.9. Restricted product availability and choice
- 2.10. Privacy concerns
- 2.11. A resistent sales channel
- 2.12. High solution costs
- 2.13. Discount models
3. M ost innovative programs and models
- 3.1. Insurance Per Day
- 3.2. Ridesharing insurance
- 3.3. Promoting safety
- 3.4. Loyalty shopping rewards through a smartphone app
- 3.5. New insurance aggregator model
- 3.6. Data portability
4. Who/what is driving innovation in insurance telematics and UBI products
5. Who are the top companies in this space
- 5.1. US
- 5.1.1. Progressive
- 5.1.2. State Farm
- 5.1.3. Allstate
- 5.1.4. LexisNexis/Wunelli
- 5.2. Europe
- 5.2.1. Octo Telematics
- 5.2.2. Insurethebox
- 5.2.3. Generali Insurance
- 5.3. What can be learnt from their model / strategy
- 5.3.1. General findings
- 5.3.2. Progressive
- 5.3.3. Allstate
- 5.3.4. State Farm
- 5.3.5. Generali
- 5.3.6. Insurethebox
- 5.3.7. AAMI, Discovery, Metromile
- 5.4. Chapter round-up
6. The Telematics Update consumer survey
- 6.1. Findings
- Q1. Before this survey where you aware of motor insurance telematics?
- Q2. Do you have a telematics insurance policy?
- Q3. If you could use a device for free to reduce your car insurance premiums - if you and your family drive carefully - how interested would you be?
- Q4. How likely would you be to take out an insurance policy which used data on your driving to offer the following options?
- Q5. Which of the following do you think are the target markets for motor insurance telematics?
- Q6. How do you see the uptake of insurance telematics?
- Q7. Which of the following would be important to you as part of an insurance telematics package?
- Q8. Which of these technologies would you favor to track your driving habits and possibly reduce your insurance premium?
- Q9. How much would you have to save on your premium to share your driving data with your insurer?
- Q10. Where do you come across information about motor insurance policies?
- 6.2. Why will customers not take up UBI and insurance telematics products?
- 6.3. Headline results
7. Regulations and privacy
- 7.1. Impact of regulation on the insurance industry
- 7.1.1. UK and Europe
- 7.1.2. US
- 7.1.3. Canada
- 7.2. Regulatory developments
- 7.3. Recent precedent on car/insurance data?
8. Why marketing is essential in UBI and insurance telematics products
- 8.1. How to build an effective value proposition
- 8.1.1. Set clear objectives
- 8.1.2. Offer personalized VAS and rewards
- 8.1.3. Offer a choice of UBI devices
- 8.1.4. Educate consumers
- 8.1.5. Find ways to become relevant to a consumer's daily digital life
- 8.2. The optimum blend of VAS and discounts
- 8.2.1. General overview
- 8.2.2. US, UK and Canadian markets
- 8.2.3. Consumer sentiment
- 8.2.4. Better segmentation
- 8.2.5. Loyalty
- 8.2.6. Device deployment costs hinder service provision
- 8.2.7. UBI needs to demonstrate more consumer value
- 8.3. Types of VAS and who are offering them and why
- 8.4. Which carriers are offering discounts and what have been the successes
- 8.4.1. US
- 8.4.2. Canada
- 8.4.3. UK
- 8.4.4. Italy
9. C ase studies
- 9.1. North America
- 9.1.1. Allstate
- 9.1.2. State Farm
- 9.1.3. Drive Factor
- 9.1.4. Desjardins
- 9.2. Europe / Rest of the World
- 9.2.1. Octo
- 9.2.2. Generali
- 9.2.3. The Floow
- 9.2.4. AAMI
- Industry learnings
List of Figures and Tables
- Figure 1: Telematics penetration in Italy by district
- Figure 2: Number of live UBI policies in the UK in 2015
- Figure 3: US consumer awareness of UBI
- Figure 4: Interrelated claims functions that benefits from the integration of telematics data
List of Tables
- Table 1: 2014 UBI adoption rates
- Table 2: 2016 UBI adoption rates
- Table 3: Number of live UBI policies in the UK in 2015
- Table 4: Before this survey were you aware of motor insurance telematics?
- Table 5: Do you have a telematics insurance policy?
- Table 6: If you could use a device for free to reduce your car insurance premium - if you and your family drive carefully - how interested would you be?
- Table 7: How likely would you be to take out an insurance policy which used data on your driving to offer the following?
- Table 8: Which of the following do you think are the target markets for motor insurance telematics?
- Table 9: How do you see the uptake of insurance telematics?
- Table 10: Which one of the following would be important to you as part of an insurance telematics package?
- Table 11: Which one of the following would be important to you as part of an insurance telematics package?
- Table 12: Which of these technologies would you favor to track your driving habits and possibly reduce your insurance premiums?
- Table 13: How much would you have to save on your premium to share your driving data with your insurer?
- Table 14: Consumer demand vs UBI value proposition
- Table 15: Insurers offering value-added services
- Table 16: North American carriers offering discount
- Table 17: European insurance companies offering insurance discounts