Usage-based Insurance (UBI) and the Growing Use of Telematics.

• Usage-based insurance is also known as pay-per-mile, pay-as-you-go, or pay-as-you-drive type insurance. It is a type of car insurance that enables the insurer to track the user's driving behavior to assess the risk and calculate the premium rate.
• UBI uses telematics technology that merges telecommunication and IT. The telematics technology is either pre-installed in a car or is plugged-in through a mobile application. Telematics provides the insurer with several data points like the user's driving behavior, the car's condition, and its mileage, which helps the insurers to create the user's insurance profile.
• As per data received from the National Association of Insurance Commissioners (NAIC), almost 20% of all car insurers in the US will offer UBI within 2025.

Growing Popularity of Chatbot Technology

• Ever since Chatbot technology became popular in 2017-18, several car insurance companies have used this technology around the world to leverage their car insurance sales.
• Using intuitive chatbots, car insurance companies can explain complex insurance products and terminologies to their customers, enable brand engagement, and increases their sales.
• As per this paywalled report by Credence Research Inc, chatbots are expected to take the technology world by storm within 2026.
• Major US-based car insurance companies like Progressive and GEICO are already using chatbots to leverage their online car insurance sales to their customers.