AUTHORISATION
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SECTION I<br />
FUNDAMENTALS OF THE UBI MARKET<br />
EXECUTIVE SUMMARY<br />
UBI is becoming a mainstream offer in auto insurance<br />
• Insurance companies have launched nearly 230 telematics programmes worldwide,<br />
in twice as many countries as two years ago.<br />
• UBI is becoming mainstream in the US and Italy and now represents 25-33% of new<br />
business among insurance companies that have made telematics a priority.<br />
© PTOLEMUS<br />
• The US will become the leading UBI market in the world. In Europe, growth will be<br />
driven by Italy but the UK, Germany and France will see UBI subscriptions take off in<br />
the next 5 years. New major markets will emerge, including China and Russia.<br />
• By 2020, nearly 100 million vehicles globally will be insured with telematics policies.<br />
This will grow to nearly 50% of the world’s vehicles by 2030, generating more than<br />
€250 billion in premiums for insurers!<br />
CONSULTING GROUP<br />
How will it happen?<br />
CANNOT BE<br />
• In the US and Europe, most car makers will have adopted UBI by 2020. The most<br />
successful model will use a central data hub provided by a Telematics Service Provider<br />
(TSP) connected to insurance companies. In North America, embedded devices will<br />
become the third most used data source for UBI policies as early as 2017.<br />
• OBD dongles will become the leading UBI device, reaching all the continents.<br />
Aftermarket black boxes will continue to grow, specifically in high premium markets<br />
and for high value cars.<br />
DISTRIBUTED WITHOUT<br />
• With 22 mobile-only PHYD programmes in activity today, smartphone apps are set to<br />
become one of the key devices to collect driving data, with or without a Bluetooth<br />
beacon. However, they will not replace dongles or black boxes, which will still make<br />
up the majority of devices used in 2020.<br />
PTOLEMUS’ PRIOR<br />
WRITTEN<br />
• For TSPs, the UBI opportunity will be worth €3 billion globally by 2020, with more<br />
than 50% of that revenue coming from the US, despite the number of insurers going<br />
direct.<br />
<strong>AUTHORISATION</strong><br />
© PTOLEMUS - www.ptolemus.com - Global Usage-based Insurance Study - January 2016 - All rights reserved<br />
Strictly reserved for the internal use of the reader - Distribution to third parties is prohibited 14