Moving the Addressable Usage Based Insurance (UBI) Market
Analysis of the UK driving population reveals, for the first-time, the full scale of the opportunity to move the UBI market beyond the young and inexperienced driver
LexisNexis Risk Solutions worked with Consumer Intelligence to conduct a survey of 3,100 UK motor insurance purchasers in an effort to better understand their attitudes, opinions and preferences for telematics-enabled, usage-based insurance (UBI) motor vehicle policies.
Overall, results revealed a tremendous amount of opportunity to move this market from looking at only the youthful driver population, which is estimated to be capped at one million drivers, 80%–90% of whom have a telematics-enabled policy in place today, to a broader segmentation across all age groups. Our findings demonstrated that:
- 8% of UK motor insurance purchasers state they would definitely be interested in a telematics-enabled programme today. This correlates to a market opportunity of 3.1 million drivers.
- 25% of the UK motor insurance purchasers would be likely to buy a telematics-enabled policy if they had a better understanding of the price discount or they were confident they would be safer drivers, correlating to a market opportunity of 9.8 million drivers.
- Combined, there is an opportunity of 12.8 million drivers when looking beyond the world of youthful drivers.
Our survey uncovered that consumers feel cost savings is the number one feature that a telematics-enabled policy can provide, followed by the peace of mind of tracking their vehicle in case of theft and evidence that can be supplied in case of an accident or claim.
