Usage-based insurance (UBI)

It is a type of vehicle insurance that uses driving behavior to determine the cost of the policy. Akrea Telematix can help design, implement and run numerous variations of that, as modern UBI programs use rich insurance telematics data to identify risky driving behavior and price policies accordingly, which can be played with.

What data can be collected for UBI?

Telematics devices collect many driving behavior data points and the list grows daily. The number and variety of data points available to insurers to optimize pricing models depends on the insurance telematics solution employed. Common data points include:

  • Location
  • Speed
  • Cornering
  • Braking
  • Trip duration
  • Road type
  • Distance
  • Direction

How is the data used?

The data collected is only useful if it can be translated into actionable insights an insurer can use to improve business outcomes. The collected vehicle data is analyzed to identify driving behaviors that indicate risk. A score can be assigned to signify to an insurer the relative risk of each driver. Akrea Telematix is always working to translate new data into actionable information insurers can use to identify risky behavior. Common risky behaviors include:

  • Night driving
  • Frequent driving
  • Frequent hard breaking
  • Frequent hard acceleration
  • Distracted driving

Telematics data can also be used to create value-added services for policyholders, engage with customers, and improve driver performance.