Usage-based Insurance (UBI) represents a fundamental change in the way insurance is underwritten, moving away from proxy-based rating models and history patterns to real-life and real-time data analysis.
In time, it is expected to make traditional methods of risk prediction obsolete and profoundly transform the way risk is underwritten.
UBI is on the verge of becoming a mainstream alternative to the traditional rating systems that shaped the insurance industry for decades. Car insurance is taking the lead with so called Vehicle Telematics (short: Telematics) and the Connected Car. Other products however will follow without doubt.
Eventually we will slowly move from a Connected Car to a Connected Lifestyle. Providing data to deal for the best insurance package for the family.