Consumers will embrace this technology just about the way they did when credit was introduced as an underwriting variable – some loved it , others didn’t (“what’s my credit got to do with the way I drive!”). With the dongle, now they can say – “what’s my driving behavior got to do with my driving behavior?”
Yes, consumers will show interest in this until they get pegged with higher rates due to the results of the dongle’s data from the way they drive. Of course most people surveyed are interested in something that they think will lower their rates… until some of them get a rate increase at the end of the dongle monitoring period…
Well, Progressive Snapshot has been struggling some. Drivers thought they would get a great deal and then the losses and driving habits caught up to them with rate increases. Dangling carrots in front of people so they can be monitored by big brother does not go over so well in the long run.
I agree. I think the only ones who may benefit from UBI will be low mileage drivers, like what Metromile is focusing on. For the average driver I don’t believe the premium savings would ever be significant enough to justify the privacy invasion.
I had a conversation with Glenn Renwick about this, and he feels it’s the new credit score. Of course people with bad credit get upset when their insurance is credit based, but people with good credit like paying less because of their good credit.
Glenn will definitely be missed, but he earned his retirement. The most successful insurance exec of his generation, in my opinion.
So when there are about 30 variables including credit, driving habits, tickets and accidents, I think there won’t be too many ways to save money on the premium. The models being used plus price optimization used by many carriers are going to continue to increase premiums for the average driver.
Tony, I wouldn’t argue that Mr. Renwick has had a successful career. However, under his watch at Progressive, Geico surpassed Progressive in WP and became the 2nd largest writer of auto. How did this happen when Progressive certainly had more superior and deeper distribution system with direct & IA channels and Nat’l accounts (example – USAA). I wouldn’t give him an A+ for that reason alone.
I have arrived to a suggestion that this type if insurance is mainly suitable for subscribers in developed countries to a greater extent as costs internet internet connections are a bit expensive to purchase for every travel you make because of low income earners.
Consumers will embrace this technology just about the way they did when credit was introduced as an underwriting variable – some loved it , others didn’t (“what’s my credit got to do with the way I drive!”). With the dongle, now they can say – “what’s my driving behavior got to do with my driving behavior?”
Yes, consumers will show interest in this until they get pegged with higher rates due to the results of the dongle’s data from the way they drive. Of course most people surveyed are interested in something that they think will lower their rates… until some of them get a rate increase at the end of the dongle monitoring period…
Well, Progressive Snapshot has been struggling some. Drivers thought they would get a great deal and then the losses and driving habits caught up to them with rate increases. Dangling carrots in front of people so they can be monitored by big brother does not go over so well in the long run.
I agree. I think the only ones who may benefit from UBI will be low mileage drivers, like what Metromile is focusing on. For the average driver I don’t believe the premium savings would ever be significant enough to justify the privacy invasion.
What “they” don’t know won’t hurt them?
I had a conversation with Glenn Renwick about this, and he feels it’s the new credit score. Of course people with bad credit get upset when their insurance is credit based, but people with good credit like paying less because of their good credit.
Glenn will definitely be missed, but he earned his retirement. The most successful insurance exec of his generation, in my opinion.
So when there are about 30 variables including credit, driving habits, tickets and accidents, I think there won’t be too many ways to save money on the premium. The models being used plus price optimization used by many carriers are going to continue to increase premiums for the average driver.
Tony, I wouldn’t argue that Mr. Renwick has had a successful career. However, under his watch at Progressive, Geico surpassed Progressive in WP and became the 2nd largest writer of auto. How did this happen when Progressive certainly had more superior and deeper distribution system with direct & IA channels and Nat’l accounts (example – USAA). I wouldn’t give him an A+ for that reason alone.
I have arrived to a suggestion that this type if insurance is mainly suitable for subscribers in developed countries to a greater extent as costs internet internet connections are a bit expensive to purchase for every travel you make because of low income earners.