Report | Connected Insurance

New Consumer Survey Indicates the True Potential for Usage-Based Insurance Growth

May 20, 2019

CMT recently conducted a survey on consumer attitude towards insurance pricing, communication, and value propositions. The results, which are explored in our 2019 UBI and Telematics Market Demand report show consumer demand for telematics and Usage-Based Insurance (UBI) is at a high: 50% of customers offered UBI insurance models adopt it and 75% of Americans want auto insurance premiums based on driving behaviors instead of traditional factors like demographics and credit score.

While 64% of drivers would download a mobile app that reports on their driving behavior for a more personalized insurance quote, only 27% of respondents have been offered a telematics-based UBI program. The total penetration of telematics in the U.S. insurance market is less than 10%, with discount-based and pay how you drive (PHYD) programs as the two most popular insurance models.

Consumers are not only interested in telematics for the discount but also for the features. For example, 83% of respondents are more interested in an insurance company’s product if it offered family safety tools like automatic emergency roadside assistance and trip-by-trip safe driving analysis.

The opportunity for insurers to offer personalized insurance is large, but so is the gap between those interested in telematics and those offered telematics. Download our 2019 UBI and Telematics Market Demand report to learn more about consumer sentiment toward auto insurance pricing and telematics-based mobile programs.