For the past two decades, I’ve been a vocal advocate for Usage-Based Insurance (UBI) across various industries, from general insurance to health, automotive to banking and finance.

My core message? We’re headed towards a world where you should only pay for what you use, not some generic actuarial guesstimate based on the “average person.”

Now, a new wrinkle in this story has emerged, and it’s courtesy of connected cars.

As highlighted in this recent Startup Daily article, car manufacturers are embedding technology that can monitor driving habits and potentially “snitch” that data to insurance companies.

While the privacy implications might raise eyebrows (and rightfully so!), this development underscores the very foundation of UBI: fair and transparent pricing based on individual behaviour.

Imagine a world where your insurance premium reflects your habits and usage, not some broad risk category based on age, location, or even gender.

In my 2022 article and podcast, Never Pay for Insurance Again?, I explored the future of UBI in detail.

The key takeaway?

Technology paves the way for hyper-personalised insurance, allowing us to ditch the one-size-fits-all approach and pay for our unique risk profiles.

This connected car scenario, though presented negatively in the Startup Daily article, strengthens the case for UBI.

The difference today compared to a decade ago?

We now carry data-collecting devices (smartphones) with us everywhere, including in our pockets, cars and homes.

With our permission, this data can paint a more accurate picture of who we are and what we do, enabling a fairer insurance model.

What do YOU think?

Would you prefer to pay for your car insurance based on actual usage and risk, or rely on an AI profile created by the insurance company?

Let’s Discuss

This shift towards UBI is a glimpse into possible new business and pricing models with technology and AI allowing us to hyperpersonalise customer segmentation with pricing and services based on individual needs.

What industries do you think will benefit most from this hyper-personalised approach powered by AI?

Share your thoughts in the comments!

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