Mobile Technology Enables Global Mass Adoption of Usage - Based Insurance (UBI)


Since its introduction onto the market a decade ago, usage-based insurance (UBI) has grown into a global industry that’s projected to expand to over 140 million users within the next five years. Whereas in the beginning, UBI technology was bulky, inconvenient and expensive, the latest updates in mobile technology now allow consumers to utilize apps on their smartphones-making it easier than ever to monitor driver behaviors.

The constantly evolving technology isn’t just making it easier for users to improve their safety by adjusting their risky driving habits, but it’s also saving them money on their auto insurance. By using real-time information, auto insurance providers have access to accurate driving events like breaking, swerving, acceleration, and phone handling can present lower premiums for drivers who practice safer driving behaviors. Some companies even offer rewards and incentives for their customers who display less aggressive and distracted driving habits.

Not only is UBI beneficial in terms of insurance costs, but it also increases overall safety on the roads. Users are able to measure their skills according to telematics scoring metrics, and adjust their driving to achieve better scores. This in turn can increase awareness on the road and reduce accidents. And since the behaviors are tracked using a smartphone app, it also can measure distracted driving in terms of smartphone use. For multi-driver commercial vehicle operators, this helps lower insurance rates and establishes a culture of eco-friendlier, safer drivers. For parents, this means more peace of mind about their teen drivers. And for insurance providers, it means more accurate policy rates and a new cost-effective customer acquisition and retention opportunity.

Without the need for dongles and excess equipment to gather driving data, offering UBI programs (e.g. Pay How You Drive “PHYD”, incentives, rewards, rebates, etc.) has become cheaper than ever for insurance companies to provide. This enables insurers more readily reward responsible drivers with lower rates that both attract premium policyholders and entice them to become long-time customers.

Tourmaline Labs™, Inc. has created a contextual behavior driver-analytics platform that’s not only compatible with any smartphone or device, but also provides users with fair and unbiased scoring data that’s relatable and relevant to driver’s daily lives.

TL KIT (a simple to install SDK) uses a multi-dimensional approach to easily collect telematics data and to generate exceptionally accurate driving behavior scores that measure both driving events and external environment. The patented software’s Artificial Intelligence (AI) platform analyzes a driver’s focus and handling in relation to environmental factors such as weather, traffic, road type, elevation, and speed limits to create a comprehensive behavior score.

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