The global market for usage-based insurance (UBI) is expected to grow at an astounding rate (CAGR of 29.2%) and reach USD 67.8 billion by 2032, according to a recent analysis from the research firm Spherical Insights. Undoubtedly, UBI can be very profitable, but, like many other services, its worth can only be determined by the experiences of its users. This means that even the most cutting-edge technology needs to be accessible and user-friendly in order to attract people to use it.
Many insurers used data gathered by a telematics device installed in the vehicle, acting as a black box, to start their first telematics programs. However, there are now a lot more alternatives for telematics applications thanks to technological advancements. Sadly, it’s alarming to see that a large majority of insurers have not necessarily benefited from this diverse range of technological possibilities as many customers have reportedly grown frustrated with their insurers’ mobile telematics app.
Recent publicly available news reports, customer reviews, and testimonials on social media and app stores bring to light an important key issue and insight: despite the growing demand for usage-based insurance (UBI), many mobile telematics apps fall short of truly optimizing the user experience and usability for consumers. Due to this discrepancy between users’ expectations and the actual experience, users feel very frustrated. It is crucial that insurers give user-centric telematics solutions top priority as the demand for UBI rises.
At IMS, we understand the significance of providing a seamless and engaging user experience for both insurers and policyholders. That’s why we have dedicated teams working tirelessly to address and improve the challenges faced by customers through significant market research. We firmly believe that the focus should extend beyond the transaction with the insurer and encompass the entire user journey, ensuring that our solutions make a real impact on people’s lives.
Our organization’s strong emphasis on the B2B2C aspect is driven by a shared mission: saving lives and #DRIVINGCHANGE. We are committed to developing and delivering telematics solutions that people can truly engage with on a daily basis. By refining the user experience and usability of our products, we aim to transform the way individuals interact with telematics technology, making it effortless, intuitive, and enjoyable.
For insurers looking to unlock their program’s hidden value: IMS Labs offers a suite of our People-Powered Technology™ program optimization services provided directly by our hands-on, expert digital insurance team within IMS. We are committed to ensuring your program meets your intended strategic outcomes, collaborating and working with your company as an extension of your program team, learn more: https://ims.tech/labs/
