Insurance Telematics Report 2013

Accessing the insurance market represents the most exciting and lucrative opportunity for technology companies in the telematics space. UBI insurance telematics appears to be at a tipping point, and is moving from a niche product to mass-market adoption in the United States and other key European markets, especially Italy and the UK. The potential US Usage Based Insurance (UBI) market is estimated at approximately 1 million vehicles in 2012, climbing to 5 million by the end of 2013 and 60 million by the close of 2019. Italy already boasts over 2 million insurance telematics subscribers, while in the UK, the potential market for is estimated to be as high as 60% of motor insurance customers. The US is estimated to have 60 million vehicles insured with insurance telematics concepts by 2019.

This insurance telematics Report 2013 comes at a break-through moment for insurance telematics.

Insurers and other stakeholders in the telematics ecosystem, including mobile network operators (MNOs), automotive original equipment manufacturers (OEMs), telematics service providers (TSPs), and aftermarket suppliers, are applying new business models to exploit the potential of telematics technology by enabling insurers to o ffer insurance policies that are tailored to a policyholder’s driving patterns and performance. These initiatives have the potential to transform the automotive insurance market.