Over the past 18 months, U.S. auto insurers have expressed renewed interest in usage-based insurance as consumers become more comfortable with the concept. Some U.S. insurers are seeing growing uptake for their telematics insurance programs. Over 30% of new customers are now opting for usage-based insurance at Nationwide and Progressive, for instance. The maturation of smartphones as telematics sensors is also playing a considerable role in shaping insurers’ renewed interest.
September 15, 2016 by Gwenn Bezard
There is no shortage of speculation about how personal auto insurance may become obsolete in a driverless era, how auto manufacturers’ product liability may compete with personal auto insurance, and how ridesharing may replace personal car ownership and vaporize the need for personal auto insurance. Those topics make good cocktail conversations, but they have little practicality for insurers for the time being.