Europeans Are Ready For Usage-Based Car Insurance

Telematics looks set to transform car insurance as smart wireless devices, smartphones, and smart cars converge to create what should be a smart insurance choice for safe drivers and their insurers: usage-based car insurance. The policy option is a win-win for the insured and the insurer: Customers pay lower premiums and, potentially, improve their driving while insurers price risk more accurately and attract safer and lower-risk drivers. With such a promising value proposition, it's not surprising that European customers and insurers alike are interested in usage-based car insurance. Yet, Europe's usage-based car insurance markets remain small and have yet to take off. This report examines European consumer interest in and adoption of usage-based car insurance, and the issues insurance eBusiness executives must grapple with to drive mass market adoption.