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The market shifts from B2B and ownership to B2B2C and usership models
August 12, 2021
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, Metromile, 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.
B2B, B2B2C, open mobility, insurtech, telematics, UBI
We see a shift from B2C to B2B and B2B2C – from ownership to usership. In simple words, we stop using private cars and prefer car-sharing and subscriptions instead. Analytics claim that such transport will dominate the market by the end of the decade.

Deloitte expects 16 mln vehicles to be registered in Western Europe in 2021. Of these, 10 mln vehicles will belong to the corporate sector. It accounts for 63% of all new registrations! The above signifies that the future of mobility will be enabled by B2B and B2B2C fleet management.

It means that the insurers and brokers need entirely new business models:

✅ Insurance products wrapped or embedded into other mobility services and solutions.
✅ Underwriting and claims automated through telematics and Artificial Intelligence (AI).
✅ Rising competition in AI utilization to upsell fleet customers with value-added services.

With these changes coming, insurers and brokers need to adjust their business models and tools to conquer new market segments and introduce new products.

And that’s what exactly Draivn has been designed for – to access, harmonize and convert mobility data into meaningful insights allowing insurers, brokers, and other mobility stakeholders to introduce new products and services in B2B and B2B2C.

Don’t wait till wolves come, and get prepared for the industry shift today with Draivn Open Mobility.
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