Do you remember the “Boy Who Cried Wolf” story? For the past ten years, thousands of UBI, Pay-per-Mile, and other telematics-based service providers for insurers have been crying:
“Our solution will revolutionize the industry!”
And it never happened. In most cases, because insurance clients have been working with closed proprietary systems serving some market fragments without the possibility to scale.
But these days the situation changes, and we see the emerging revolutionary telematics-based projects.By Miles
, Mile Auto
, and traditional insurers, like the innovative Progressive Insurance
, Discovery Insurance
, and even conservative GEICO
(who seemed to miss the bus from the very beginning) appear here and there.
These projects hit the moon because the environment, market, and insurance value chain were ready for such models. And if you look at all the successful UBI projects nowadays, you will see that most of them are related to personal lines, while commercial ones are underserved. And there are reasons for this:
❗ The ratio of personal and commercial vehicles is 80 to 20%.
❗ The majority of personal cars do not have any telematics devices. An insurer can sell any turnkey solution, hardware, or mobile tracking app.
❗ There are success stories in the industry, so it’s easy to follow them without reinventing the wheel.
But what about that buzz around commercial vehicles insurance? People are changing the way they transport themselves, deliver things, and treat transportation in general.