LAURA DRABIK:

Welcome to this season’s
Tech Trends, filmed in

Sydney, Australia.

When it comes to sun,
surf, and car culture,

Australia rivals California.

And Australia could also see some

of the highest growth potential

in usage-based insurance, or UBI.

A market set to surpass $299
billion worldwide by 2033

growing 25% annually.

Today, one in five consumers
choose UBI policies

for personalized premiums

based on actual mileage
or driving behavior.

Real-time telematics data
from vehicles, dongles,

or smartphones make it easy for carriers

and auto manufacturers
to offer UBI coverage.

This data can also help
them automate claims intake,

accelerate claims processing,

and boost customer satisfaction.

UBI policyholders report
6% higher satisfaction.

Meanwhile, 70% of commercial carriers

plan to expand UBI
offerings within two years.

Carriers and OEMs operating

with a modern cloud-based
insurance platform

can quickly generate value with UBI.

With Guidewire, for instance,

they can leverage our
localized turnkey UBI solution,

regulatory content,

and pre-connected telematics integrations

for rapid market entry.

In fact, one major US-based automaker

launched its own
usage-based insurance brand

using Guidewire’s UBI template,

embedding quotes into new car sales.

These same solutions helped
automate claims intake.

Vehicle sensors determine
necessary repairs,

or whether the vehicle is a total loss

shortening claims cycles
to about three hours

versus three to seven days.

For total losses,

intake to payment takes just three days

compared to an industry
average of two to three weeks.

In Canada, a Guidewire
customer tapped our solution

to launch Alberta’s first
UBI insurer in just 120 days,

and it’s on target to achieve
loss ratios of less than 60%,

which is well below industry averages.

Meanwhile, another
Guidewire customer teamed up

with a San Diego based MGA

to launch a new line of
business delivering UBI

to commercial fleets in 49 states.

And it did it in just three months,

with telematics-accelerated
claims to come.

By enabling personalized coverage

and unprecedented claims efficiency,

telematics-powered usage-based insurance

is reshaping the industry.

From Sydney to San Diego and beyond.