Telematics Will Disrupt The Car Insurance Industry

Vehicle telematics — the integration of vehicle monitoring systems, mobile communications, and information processing — will disrupt the car insurance industry. Telematics-enabled usage-based insurance (UBI) is gradually emerging as a viable alternative to traditional car insurance pricing models. To stay competitive, eBusiness executives at insurance companies need to define how their firms should react to both the opportunity and the threat. In this report, we provide an overview of the current state of UBI in Europe and examine the strategies that insurance companies have pursued to date. We also explain why and how eBusiness executives need to prepare for disruptive new entrants.