Study of the Acceptance and Influence of UBI Pricing Factors

In 2008, the usage-based insurance (UBI), that insurance premium was calculated based on driving behavior data recorded with a plug-in telematics device or a mobile APP on board was introduced. Between years 2016 and 2019, 8 insurance companies providing UBI insurance policies were on Taiwanese mark...

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Bibliographic Details
Published inJournal of the Eastern Asia Society for Transportation Studies Vol. 15; pp. 740 - 759
Main Authors WU, Chi-Hung, CHEN, Youn-Han, CHEN, Tze-Yi
Format Journal Article
LanguageEnglish
Published Eastern Asia Society for Transportation Studies 2024
Subjects
car insurance premium
on-board telemetric
pricing factor
usage-based insurance (UBI)
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Summary:In 2008, the usage-based insurance (UBI), that insurance premium was calculated based on driving behavior data recorded with a plug-in telematics device or a mobile APP on board was introduced. Between years 2016 and 2019, 8 insurance companies providing UBI insurance policies were on Taiwanese market. However, this innovated insurance policy was not successful. The possible reason might be the insurance premium were simply measured by distance traveled. This study is to understand customers’ attitude towards UBI insurance policy and find out appropriate UBI pricing factors. A total of 580 valid samples were obtained. This study found respondents are not familiar with UBI car insurance. The factors of hand-hold mobile phone usage, speeding, sudden lane-changing, and following distance are more acceptable to the public. To campaign UBI policy, we suggest providing customers on-board telemetric in their own cars. It will help to increasing the public’s acceptance of UBI insurance policy.
ISSN:1881-1124
DOI:10.11175/easts.15.740