New Alliance Helps Insurers Develop Usage Based Insurance Strategies
Today, we bring you a guest post from Roosevelt Mosley at Pinnacle Actuarial Resources. As many of you might have seen in our recent press release, we recently joined forces with Pinnacle to offer auto insurers more comprehensive usage based insurance services.
Usage Based Insurance Continues Steady Growth
Usage based insurance (UBI) is not only firmly established in the private passenger automobile insurance market, but is gaining market share and is here to stay. Many of the major insurance companies have launched a UBI program, and dozens of other companies are in various stages of strategy development, research, pilot programs and roll-out. Latest estimates place the market share of customers in a UBI program at 10%. Given the number of programs currently available, and those still in development, the number of UBI programs offered to consumers will grow quickly.
With this sudden and significant shift toward UBI in the auto insurance marketplace, it will become increasingly important for companies to determine their UBI strategy. Pinnacle Actuarial Resources, Inc. recently announced a business alliance with Driveway Software, to offer UBI analytics and driver behavior scoring for insurance companies.
Pinnacle’s relationship with Driveway will provide assistance to insurers developing a UBI strategy in several ways.
- With over 500 million miles of collected driver behavior data from Driveway’s smartphone app, Pinnacle will be able to develop driver behavior scores that can be used by insurers who want to launch a UBI product but do not have data to develop driver scores and associated rates. These scores will be easily customizable to insurer specifications.
- Pinnacle’s analytics and insurance expertise will help companies translate the driving behavior data into appropriate discounts.
- Combining the driving scores with our extensive customer research will help companies in the development of a strategy that can be employed for increasing the likelihood of success upon launch.
- Partnering with Driveway provides customers with an option for launching a UBI program in less time and at a lower cost than has been possible in the past.
UBI is here to stay, and Pinnacle is excited to be able to offer these services to our customers to help them take advantage of all the benefits a UBI program can bring. If you are interested in discussing UBI services, please contact Roosevelt Mosley at [email protected].