AUTHORISATION

SECTION I
FUNDAMENTALS OF THE UBI MARKET
3. So who is UBI for?
a. The young market
Globally, the teen/youth market has remained one of the most strategic markets to
target with UBI and safety-related services.
Licence
However, the UK’s early focus on young drivers has been more the exception than
the rule. Most insurers are looking at the young market for small scale trials, rather
than for technology testing or gathering data. However, a business model based
on an accident-prone driver paying individually more than €2,000 in premiums is
difficult to scale over many other segments.
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The young driver market in the US and other countries, such as France, is seen as a
minority niche. In many countries, most young drivers’ policies are an extension of
their parents’, and it is therefore uncommon for a new driver to have an insurance
policy in his own name. US law actually requires the owner of the vehicle to be the
policyholder, irrespective of who the driver is, and drivers living at the same
address must specifically be covered on the same policy.
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Teen programmes are, however, common and requested by parents, especially in
the US since drivers receive their first car earlier than in many other countries.
These programmes are designed to bring security and surveillance, with
monitoring done by the parents.
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Fig 1.41: Web-based tool: Road Aware from State Farm
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Source: State Farm
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