Usage‐based insurance and its acceptance: An empirical approach

Abstract

This study aims to explore the motor insurance market's attitude towards usage-based insurance (UBI), and thus its readiness for a launch in the near future. Data on client perception was collected using a structured questionnaire. On the basis of this, an initial selection of factors, other than income, that could influence the declared attitude of drivers was demonstrated showing that it is primarily dependent on certain demographic characteristics like their age, sex, or place of residence. A strong relationship was also demonstrated with respect to the intensity of the vehicle's use, to the amount of the insurance premium they have paid, and to the self-assessment of the respondents' driving skills. Clients are likely to accept the concept of UBI once implemented, but that they are not ready yet to give up the traditionally used methods of premium calculation. Their attachment to discounts granted can be very strong in particular to the no-claims bonus.

Factors determining usage-based insurance acceptance - Poland and Spain results

“…However, setting the amount of the premium based on the UBI may, after all, encourage drivers to limit risky behaviour. Therefore, Śliwiński and Kuryłowicz claim that insurance companies should target their UBI motor insurance offer to specific groups of drivers who pay higher premiums (and at the same time are more prone to risky driving behaviour) (Śliwiński, Kuryłowicz, 2021). This is confirmed by an experimental study conducted by Bolderdijk et al (2011) in which 141 car insurance policy holders in the Netherlands participated.…”

On the Adoption of Smart Home Technology in Switzerland: Results from a Survey Study Focusing on Prevention and Active Healthy Aging Aspects

“…The link between the perceived value of insurance services related to prevention and SH interest is stronger (64.8%). This observation is noteworthy for SHs, as financial rewards have been found to be more important than service aspects in other IoT insurance areas (e.g., telematics and wearables [68,73]). Finally, we note that those interested in an SH insurance offering reflect a clearly higher intention to adopt SHs (82.5%).…”

“…However, this would imply the willingness to share data with the company. We have developed the following statements, drawing inspiration from other IoT technologies such as telematics [68] and wearables [69]. The central elements relate to the perceived value of SH insurance offerings in terms of costs, the value of the insurer's prevention services, and the respondents' interest in such SH insurance offerings.…”

Current deficiencies and reinforcement of institutional pillars for reform in the green insurance market: A systematic review

“…A recent study in Sliwinski and Kurylowicz (2021) found that most of the respondents showed their interests in usagebased insurance, though their acceptance is affected by demographic factors such as age, sex, and place of residence. On the supply side, however, Che et al (2021) found out that there are no more new insurers adopting the usage-based insurance in the United States since 2016.…”