Exploitation base insurances are becoming increasingly popular worldwide. In 2017, the Usage Based Insurance (UBI) market grew by 26%, thanks to around 280 insurance companies worldwide.

What is the insurance in question on an operational basis?

In the most common case, a GPS device is installed in the vehicles of the insured, giving full information about the driver’s driving behavior as well as the condition of the vehicle. Driver behaviour is a key element in risk management, on the basis of which the price of the insurance policy is determined. This pricing method is becoming increasingly popular globally, with the number of UBI policies reaching 17.4 million in 2017.

Where are UBI insurance most common?

Currently, most usage-based insurance is most common in the US, where three insurance companies – Progressive, Allstate and State Farm – hold 35% of the global UBI market. With the active help of insurers Generali and UnipolSai, Italy is the second country in the world where UBI insurance is most common. Market penetration there is among the highest, reaching 15% at the end of 2017.

The idea of such innovative “pay-as-you-drive” and “pay-how much-you-drive” insurance products has reached other countries in the world such as Luxembourg, Poland, Tunisia, Guatemala, Malaysia, the Philippines and Malawi. 

What are the benefits of UBI insurance?

The benefits of UBI implementation by insurance companies are indisputable. These include:

  • Reducing accidents on the road;
  • Reducing the number of claims;
  • Increasing detection of insurance fraud;
  • Reducing the value of paid claims and more expensive policies for dangerous drivers;
  • Ability to locate stolen cars and more


Last but not least, consumers also receive a number of benefits from using UBI policies, such as:

  • Ability to signal immediately in the event of an incident;
  • Rapid localisation of the accident and timely alerting of medical and/or service teams in case of need;
  • Responsible drivers pay lower premiums and receive incentive bonuses.


Currently VEM Technology’s service-based insurance solution is not available, due to structural corporate changes, but you can always click here or take advantage of a free consultation by calling 0700 1 49 49.

Source: PTOLEMUS Consulting Group.