Is the Auto Insurance Market Ready for UBI?

In a recent survey conducted by Towers Watson (NYSE, NASDAQ: TW), a global professional services company, the conclusion was simple.

Yes!

Consumers are very receptive to UBI auto insurance programs.

The survey concluded that 79% of respondents would be willing to purchase or consider purchasing a usage-based auto insurance product.

The group most interested were younger drivers between the ages of 18-34 years, who expressed the greatest interest, while the next largest segment that would be interested in using the device are those who classify themselves as regular daily drivers (54%).

There was some feedback provided by the survey, however, and insurers considering or operating usage-based auto insurance programs need to consider this information carefully.

The survey respondents were clear that they were concerned that the information collected wasn’t used to increase their premiums, and that they still had some issues relative to overall privacy, or to deny coverage.

This is all really good news for insurers who are early entrants into the usage-based auto insurance market.

The Sun Coat General UBI program offers the insured the opportunity to contribute their drive data to earn auto insurance discounts.

Consistent with the consumer’s concerns, the package doesn’t ever increase the consumer’s premiums, their privacy is protected, and the data is not used in the claims process to determine coverage.

With the rapid shift in consumer sentiment toward new and innovative auto insurance programs, like this package, Sun Coast is poised to take advantage of the grown segment of the auto insurance market that are interested in usage-based auto insurance.