“Integration of AI, Telematics, and Vehicle Connectivity in UBI Programs”
- A major trend reshaping the North American UBI market is the growing integration of artificial intelligence (AI), telematics, and advanced vehicle connectivity to deliver real-time insights into driver behavior, risk assessment, and personalized pricing.
- These technologies enable insurers to offer dynamic policies such as Pay-How-You-Drive (PHYD) and Pay-As-You-Drive (PAYD), which reward safer driving habits and help reduce accident rates.
- For Instance: In December 2024, Allstate enhanced its Drivewise program by integrating AI-powered crash detection and personalized driving tips via mobile apps, significantly improving user engagement and policyholder retention.
- The trend toward connected vehicles and smartphone-based telematics is expanding UBI accessibility, especially among younger, tech-savvy drivers.
