The changing landscape of Usage-Based Insurance

Insurtech Story Podcast - A podcast by Insurtech Story

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All sectors are evolving due to the rise, development, and adoption of linked technology and big data. Usage-Based Insurance (UBI) is the most well-liked application of big data adaption in the insurance sector. UBI first takes the form of a straightforward unitary Pay- As-You-Drive (PAYD) scheme in which it is still unclear how to classify good and bad drivers. The Pay-How-You-Drive (PHYD) model has replaced PAYD, and it bases the cost of personal auto insurance on a post-trip analysis. The PHYD model's flaw is that it doesn't offer proactive alerts to direct the driver along the journey. The Manage-How-You-Drive (MHYD) model further develops the PHYD paradigm by giving drivers proactive engagement in the form of alerts. Points of Discussion: 1. Usage based insurance is relatively a new concept in the insurance market. How do you see this evolving on the coming days? 2. Do you see an increase adoption of usage-based insurance globally? Are there any direct relations to pricing that can have an impact on how users see the benefit vs. cost? 3. The connected car has come up to be the next big thing in automobile insurance. How do you see this fitting in with the usage-based insurance ecosystem? Speaker Bio: Aravind Ravi, is the Co-founder & CEO of Inaza, an InsurTech which caters to the needs of Underwriters, Managed General Agents and Brokers in a rapidly transforming Motor insurance industry with its Platform as a Service (PaaS) offering.