The Usage-Based Auto Insurance Report: How innovative insurers are using IoT to transform auto coverage — and why the pandemic will make this flexible insurance model the new normal

Executive Summary

Usage-based insurance (UBI) is poised to overhaul the insurance industry, as it enables insurers to personalize policies, and allows them to cut costs, as well as improves accuracies of underwriting.

Three Key Questions This Report Will Answer:

• Why are auto insurers incorporating IoT within their offerings, and what are the benefits?
• What are the different ways insurers can add IoT-powered services to their product suite?
• What are key incumbent and insurtech players doing so in the industry?

WHAT'S IN THIS REPORT? In this report, Insider Intelligence will evaluate the growth opportunities within UBI, outline the model's benefits, and highlight key players in the space. We profile three incumbents and one insurtech within the UBI space and detail information about their onboarding process, IoT devices, data collection, and pricing. Additionally, we spotlight some of the key considerations in relation to each offering, as well as the impact of the pandemic on the insurers' operations. Our outreach process involved exclusive interviews across three providers in July 2020, while Progressive's Snapshot profile is based on desk research due to interviewee unavailability. Additionally, we discuss why more incumbents should move into the UBI space and define key features they should offer to get a competitive advantage.