Press release

CORRECTING and REPLACING Consumer Demand for Telematics and Usage-Based Insurance at All-Time High

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The majority of American drivers (75%) reported they would like insurance premiums to be based on ho ...

The majority of American drivers (75%) reported they would like insurance premiums to be based on how safely they drive rather than factors such as credit score, demographic information, or vehicle model. They also reported they would be interested in an insurer’s mobile app if it included safety related features. (Graphic: Business Wire)

The corrected release reads:


New Research from Cambridge Mobile Telematics Shows Opportunity
for Customizable UBI Based on Driver Safety Rather Than Demographics or

Cambridge Mobile Telematics today launched its 2019
UBI and Telematics Market Demand report
, charting the demand for
Usage-Based Insurance (UBI). By comparing consumer attitude towards
insurance pricing, communication, and value propositions, the report
finds that three-quarters of Americans want insurance pricing to be
judged on how they drive, showing the opportunity for insurers that
foster UBI adoption.

Consumer-facing brands and products have become increasingly focused on
tailored or personalized offerings in recent years in response to
consumer appetite for bespoke services. Today, more than 50% of
customers offered UBI insurance models adopt it, and the vast majority
of American drivers (75%) reportedly would like insurance premiums to be
based on how safely they drive rather than generic factors such as
credit score, demographic information, or vehicle model.

The findings demonstrate that the opportunity for insurers to provide
customized insurance models is ripe – almost two thirds (64%) of drivers
claim to be willing to download a mobile app (like a Try Before You Buy
model) that tracks their driving for a more personalized insurance
quote. Today, there is still room for insurers to capitalize on this
demand since despite consumer appetite just over a quarter (27%) of
respondents have been offered a telematics-informed UBI program. The
total penetration of telematics in the U.S. insurance market remains
less than 10%– the two most popular insurance models are discount based
and pay how you drive programs.

Technological advancements in mobile sensing, IoT and artificial
intelligence today make it possible to deploy new business models and
services at scale, both to prevent
and to respond more effectively in the event of an
emergency. The report finds that the vast majority of consumers are
interested in programs that will keep them and their families safer on
the roads. Over three-quarters (83%) of respondents claim they would be
more interested in an insurance company’s product if it offered tools to
keep their families safer on the road such as emergency roadside
assistance (78%), and trip-by-trip safe driving analysis (60%).

“We live in a world where consumers have grown accustomed to customizing
their purchases and today telematics offers them a solution that not
only improves
driving behaviors
but also better informs risk assessments and
customer retention – it’s a huge opportunity for insurers,” said Ryan
McMahon, vice president of marketing at Cambridge Mobile Telematics.
“UBI programs can reduce costs for the driver as well as risk for the
insurance provider so it’s a win/win. Today’s technology makes these
solutions an easy and affordable way to make the roads safer for

Findings from the full report can be found here.
For more information about Cambridge Mobile Telematics and its
solutions, please visit:

About Cambridge Mobile Telematics (CMT)

CMT’s mission is to make the world’s roads safer. CMT’s DriveWell
platform measures driving quality, scores driving performance,
incentivizes safer driving, and provides crash and claims services for
insurers, rideshares, and fleets. Since its first product launch in 2012
that pioneered mobile Usage-Based Insurance, CMT has become the world’s
leading mobile telematics and analytics company with its phone-only and
phone+Tag programs. CMT’s award-winning DriveWell platform is used by
leading insurers, commercial fleets, cellular carriers, and other
organizations in more than 20 countries, improving safety for millions
of users. To learn more, please visit
and follow CMT on Twitter @cmtelematics.