Any usage-based auto insurance (UBI) product launch is vulnerable to common reversals that can slow or even derail the project. Some simply cause delays, but others have cost the clients significant real-dollar outlays and opportunity costs.
Executive SummaryTowers Watson's Robin Harbage outlines concrete actions for the successful rollout of a usage-based auto insurance product launch, suggesting that insurers collect data beyond the one or two predictive elements identified by a telematics service provider.
Since many other insurers will be following down this road, it may be valuable to share a few of the most common issues we’ve seen recur during Towers Watson’s work on nearly 40 product launches.
Topping the list is a problem we call “widget paralysis”—the decision by an insurer to explore UBI by installing a series of telematics devices into cars and gathering data.
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