IMS Insurance Telematics

Mileage-Based Insurance Telematics Programs

Mileage-based programs are seeing a resurgence. New developments in mileage-based insurance telematics are giving insurers an additional edge.

The World Has Changed

Due to the recent pandemic, more relaxed corporate policies around work-from-home are resulting in a direct decrease in miles driven – a phenomenon that is here to stay. The net effect – an immediate surge in popularity of usage-based and mileage-based insurance programs as policyholders demand more control over their insurance and the premiums they pay.

According to the Accenture Global Insurance Consumer Study, 73% now express interest in this model!

In order to drive demand for insurance products that offer greater value, build trust with policyholders, and provide rich and engaging experiences, it is essential for you to offer more personalized insurance programs and services to your policyholders.

Mileage-based insurance programs, often referred to as Pay-As-You-Drive (PAYD), are regaining traction with insurers who are looking not only to compete, but thrive, in developing innovative insurance telematics offerings in a mature market with the backdrop of an emerging post-pandemic environment. Telematics-based mileage programs offer auto insurers a number of benefits, including:

  • Quick to implement

  • Offer more transparency

  • Provide policyholders with personalized insurance option

  • Increase policyholder retention

  • Encourage safer driving through behavior-based coaching and value-added services


Why data-driven, mileage-based insurance programs could become the ‘new norm’


Comparing Smartphone, Self-Powered, OBD, Black Box, and OEM Embedded Devices


Mobile Telematics Essentials: A Fundamental Guide for Auto Insurers


Pricing Structures for Mileage-based Insurance Telematics Programs

Below is a breakdown of the different pricing structures that can be implemented in a mileage-based insurance telematics program, starting with a traditional “Basic Rate” pricing structure, followed by a “Personalized Rate” and finally, a more comprehensive “Variable Mileage Rate”:

Billing Options for Mileage-based Insurance Telematics Programs

In addition to the flexibility and personalization around pricing structures available, a variety of billing options also exist ranging from a traditional “Prepaid Mileage” plan to “Post-paid Recurring Billing”, and finally, “Post-paid Ad-hoc Billing”. Here is a detailed breakdown:

Why IMS for Mileage-based Insurance Telematics Programs?

IMS UBI Intelligence delivers on the promise of being the premier, most complete UBI solution, offering a one-stop shop for an insurer’s UBI needs – no additional suppliers or multiple partners to work with.

Our key differentiators

  • One-stop Shop for Program Needs

    IMS UBI Intelligence offers insurers a single source provider for all their UBI program needs, including hardware, logistics, support, secure data warehousing, data analytics, driver portals and more. No need to deal with multiple suppliers and partners.

  • Fully Customizable Solutions Without Sacrificing Speed to Market

    IMS UBI Intelligence provides the best of both worlds: 1) a turnkey approach to improve time-to-market while also 2) being customizable to branding and program requirements.

  • Value-added Services for Future Revenue Opportunities

    IMS UBI Intelligence is powered by IMS DriveSync® – IMS’ connected car platform – providing insurers the ability to roll out future revenue-generating services to current customers. Examples of value-added services include: infotainment, roadside assistance, vehicle health and more.

  • Ability to Offer Differentiated and Segmented Programs

    IMS UBI Intelligence provides solution options so insurers can create targeted, differentiated programs for specific audiences and geographies.

  • The Best UBI Experts in the Industry

    Access to a team of subject matter experts with the experience and best practices developed by working with numerous insurers around the globe.

  • Flexible and Scalable Architecture

    IMS’ award–winning technology services platform is future-proofed for years to come and offers an unmatched solution that will help ensure the success of your UBI program in today’s competitive marketplace.

Data-Agnostic Collection Options

As the only true data source agnostic solution on the market, we work closely with you in choosing the right technologies to adopt to ensure you achieve your growth goals, and potential. We make the whole process of a successful launch as simple and easy as possible.

Sensor Overview with Pros & Cons

Smartphone/ SDK Option

Use of mobile as sensor, either through white label app or SDK in 3rd party app

  • No-cost deployment and improvements in data integrity make this the most viable option for mainstreaming insurance telematics
  • Drives high levels of customer engagement via feedback apps
  • Operates completely independently to the vehicle and circumvents intrusion by OEMs
  • Can be deployed via bespoke apps or SDK into 3rd-party apps
  • More easily ‘game-able’ by the user to mask behaviors
  • Not capable of robust, reliable collision detection as not firmly anchored, so less value for claims
  • Device management can be a challenge as mobile manufacturers (esp. Apple) change parameters of operability (e.g. GPS & battery)

Self Powered/Beacon

Dashboard / windshield mounted battery-powered device

  • Low cost deployment and known data integrity make this an attractive option for middle to mainstream insurance telematics
  • Using a tethered app allows for improved customer engagement
  • Has high-fidelity collision detection capture within the device to aid with post collision claims handling
  • Easy self install for the customer, and captures journey data even if the mobile is not in the vehicle
  • No FNOL if the mobile is not in the vehicle at the point of collision
  • Battery life is limited to approximately 24 months, and requires replacement for following years


Dongle plug-in for OBD port

  • Only aftermarket device that can access CAN bus data, offering vehicle status data and prognostics
  • Ubiquitous in European & North American markets for insurance and fleet
  • Ease of self-installation (in some cases)
  • No current success in the UK insurance market due to inaccessibility of OBD port
  • Lack of consistency of data across vehicle makes/models (e.g. only > 60% accuracy on fuel level readings)
  • Faces an uncertain long-term future due to OEM threat: European OEMs lobbying to restrict 3rd party access; many ports block data transmission once over 30mph
  • Security concerns, and easy to 'tamper’

Black Box

Installed box

  • The UK standard for UBI, gives ‘always-on’ data stream
  • Standardization of data harvested from the device across all vehicles
  • High-fidelity collision detection and robustness of data helps claims remediation and boosts loss ratio performance
  • Theft detection and stolen vehicle recovery a key benefit for carriers and mobility operators, and can be positioned as an adoption driver for consumer propositions
  • No access to CAN bus data
  • Relevance may be limited long-term if OEMs manage to align around useful connected car data standards that are commercially viable

OEM / Connected Car

Direct feed / line fit from on-board computer

  • Potential to provide access to embedded sensors and a wealth of additional lines of data analysis, such as ADAS systems
  • OEMs are starting to realize the potential to monetize data for their own and 3rd party provider benefit – insurance is the key use case
  • Challenge around standardization of data protocols across all makes/models to make scoring unilaterally applicable
  • Uncertainty around timeline for ubiquity, and no clarity around likely cost of data to 3rd parties
  • Many manufacturers still concerned about data ownership and privacy

IMS Mileage-Based Insurance Telematics Components

For Auto Insurers

All the tools you need to manage and administer a successful pay-per-mile insurance program.

  • Business Center

    Program administration and reporting

  • Enhanced Data Feeds

    Actuarial grading score

  • Customer Care & Support

    Scalable customer support options available to support program growth

  • Program Management & Support

    Dedicated assistance with training, adoption and retention plans

  • Logistics & Fulfilment Solutions

    Operational assistance, including forward/reverse logistics, provisioning and enrolment

  • Systems Integration

    Seamless integration with external applications and corporate systems

  • System & Data Management

    Scalable IT architecture with data warehousing and security

  • Insightful Analytics & Intuitive Interfaces

    High quality intelligence and visualizations for insurers and end-users

For End-Users

One deployment, using the IMS DriveSync platform, can support both sides of your insurance business – personal lines and commercial lines users.

  • In-Vehicle Enabler Selection & Configuration

    Flexible technology options to support programs

  • Mobile & Desktop Interfaces

    Post-trip driver behavior, scoring and coaching tips

  • Custom Notifications & Alerts

    Communication for driver relationship management

Benefits for auto insurers

  • Increase loyalty of current policy holders & attract new customers
  • Generate revenue via value-added services
  • Lower risk, cost and claims

Benefits for drivers

  • Personalized auto insurance premiums
  • Increased driver education & improved driving skills
  • More awareness for better preventative maintenance

Learn more about IMS Mileage-Based Insurance Telematics programs

Contact us to request for more information