Time is right to escalate UBI adoption: LexisNexis study

Most car owners value the advanced safety and connectivity features in their vehicles, presenting an opportunity for automakers and insurers to promote the adoption usage-based insurance (UBI), according to a study by LexisNexis Risk Solutions.

Related: Allstate’s UBI program moves into Nova Scotia

The sixth annual LexisNexis Telematics Usage-Based Insurance Study found that 76% of car owners are happy with their vehicles’ connectivity and advanced driver-assisted systems (ADAS) with features such as automatic braking and blind spot detection.

Only 15% of people seek out ADAS and 19% look for connectivity when car-shopping, the study found. But even though most people aren’t looking for these features, the majority of them felt safer having them in their car.

“This unfolding consumer dynamic presents a unique opportunity for automakers to work with insurers to design services around the cars of the future,” Pavan Mathew, the director of OEM at LexisNexis Risk Solutions, said in a news release. “Working together, insurers can leverage this attitude shift to drive UBI adoption while automakers can use the information to develop more valuable products and services that their customers want.”

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This story was originally published by Canadian Insurance Top Broker.