WHY SHOULD WE DEPLOY A UBI SOLUTION?
Insurance Carriers Are Moving Aggressively With UBI Insurance. You Want In But You Have Questions.
We’ve got answers.
How big is UBI today?
According to the Telematics Update Conference in Chicago(Sept 2014), there are 35 live UBI offerings in the North American marketplace today. There could be as high as 70% of carriers looking at options to address UBI right now. PtolemusUK(analyst group) predict that in North America, by 2020, this will cover 30% of all personal auto insurance offerings.
Why should we look into UBI?
If you cover Personal Lines Auto, by now, you have likely seen some attrition that would be due to other larger carriers taking away your safest drivers. Offering a UBI type policy enables you to protect your existing customer base from eroding. Offers of 15-30% rebate for best drivers with free trials of UBI devices are all over your marketplace. Once your competitors take away your best drivers, even at a low premium, they can now push Home insurance and specialty products.
How long does it take to get a program going?
For the most part, we know that it takes from 7 to 9 months to
convert a successful UBI pilot into the marketplace. Filings with state regulators, understanding which data elements will be used from tracking and how they will be incorporated in your rating engine and algorithms are all factors that will determine your go-live date. If you haven’t started the process, you are already very late.
What are the options for UBI technology?
There are many companies offering UBI tracking technology. Most insurance carriers go with a fixed device or dongle that is attached to the car. These devices require the insurance carrier to be purchased from a vendor, shipped to a policyholder and eventually recovered. It could be an expensive model. AXA Europe(quote from TelematicsUpdate Chicago Sept 2014) found that model to be costing close to 9% of premium. Mobile UBI solutions cost approximately 1.5% of premium, which they selected. We predict that the trend will quickly move to mobile, since you already have a lot of data about your drivers. With mobile, you can add a significant number of elements for a very low cost and quick deployment.
What are other insurance carriers tracking?
It all depends on what you want to include in your rating formula. It could just be a driver score or individual elements like speed over speed limit, driven miles, top speed, time of day, GPS location, hard acceleration or breaking or many other driving elements.
How is it deployed?
You brand it. You market it. We customize it and put it on the mobile stores. Your policyholders download the app and turn it on. That’s it.
How much does it cost to install? Are there set up fees?
There are no set up fees for your insured, no surprises. You provide the app for free. You, the carrier agree to an upfront fee for customization, to identify what data elements you want to increase your rating accuracy. We set it up, you promote it and you get the data at set intervals mutually agreed. You also pay a very minimal fee on a user per month basis.
How does it work for the policyholder? What do they need to do?
Once the app is on their mobile device, they tap on it to turn it on. You or your agent will have set them up with a unique code. They will input an email address and their name and they are set up. They hit ‘start tracking’ and are now set for the period that you agreed with your policyholder.
What are we tracking?
You already have a number of key elements to rate a personal auto risk. Our UBI app will give you ‘ride along’ data that will provide you real-time and/or historical view of a set period of driving data of your insured. We will provide you a list of the elements that we track. Not all carriers want all the elements. After you have selected the needed driving behavior elements, we ensure that only the relevant data is sent to your rating engine via our proprietary API.
Tracked elements today include but are not limited to:
Texting and Driving (distracted behavior), GPS location, time of travel, distanced travelled, absolute speed, speed versus local speed limits, hard acceleration and hard breaking.
What about upgrades?
That’s easy – when we develop new features or functionality, we can incorporate them into your offering if you chose to do so and your policy holders will then all get the same benefit.
Can it integrate with my back-office software or rating engine?
Yes! GeodeTech can give you access to an API to access your data and import it seamlessly in your back office systems.
How soon can I start using it after we “turn it on”?
Immediately. As soon as the app is downloaded and installed, you can start testing our solution.
What else do we get to monitor our drivers?
If you are interested in setting up “in-car coaching” message and alerts, setting up geo-fences to monitor if your policy holders travel outside a specific radius or monitor absolute speed, we provide a facility for you to control the data you access. All these rules can be set, accessed and viewed through the “COMMAND CENTER”.
I hear that other carriers have a device attached to the car. Is that better?
Most carriers selling UBI policies in North America today use the fixed device approach. It is more expensive because 1) you have to buy the device 2) you have to ship the device to your policy holder 3) you have to recover the device 4) you might not recover the device. Some carriers actually penalize their insured 50$ or more if the device is not returned once the tracking period is over. Our app will track the same elements with the same precision as the fixed device. If you chose to go with the fixed device model, we can also provide that feature.
What advantages are there to using the fixed device?
The fixed device is attached to the OBD-II port and provides acceleration data, along with speed, breaking, miles driven and via a GPS chip, location based information. This is all available with our app. The fixed device is monitoring the car. Your policyholder could lend the car for 2 months to someone else (spouse or other) that has a better driving pattern to access the rebate offered for good driving behavior. It becomes very difficult to see who is driving the vehicle.
How can we get started?
You can contact GeodeTech directly. GeodeTech will work with you to understand and define the signup process, the data elements required, provide access to the API for testing and customize / brand the app to your product name and colors. You will have your own branded UBI app in the app stores (Apple and Android) inside 90 days.
GeodeTech contact info: firstname.lastname@example.org