Usage-based insurance tre for 2023
Usage-based insurance is increasing in popularity and looks set to disrupt the way many providers create new products
U sage-based insurance – or UBI – has become synonymous with state-of-the-art digital insurance providers . The technology , which is mainly used within the auto insurance market , has a robust and impressive growth rate .
Indeed , according to the Global Usage-Based Insurance Market Report 2022 , the sector is expected to grow to US $ 132.02bn by 2026 , at a CAGR of 24.9 %. Needless to say , this long-term growth looks steady , despite many instabilities within the marketplace – and expert predictions detect not even a whiff of a slowdown until at least 2031 .
The birth of UBI But the industry hasn ’ t always been this healthy – and UBI isn ’ t even as shiny and new as it currently appears . The main gamechanger within the industry is the advancement of technology , which has seen concepts and innovations that have been in the pipeline for decades finally come to fruition .
According to Verisk , UBI was first conceptualised in the 1960s in the US at a time when tensions with the former Soviet Union
38 January 2023