Over the past decade, auto insurers have introduced and continuously refined usage-based insurance programs. Powered by telematics technology, which transmits data in real-time (or close to it), UBI promises policyholders some more control over their insurance price in exchange for that data.
As inflation took hold in the post-pandemic era, insurance rates rose along with everything from gas prices to homes to food. That spurred a noticeable amount of interest in, and adoption of, UBI programs. In December of 2021,
But there was a turnaround. In the company's first quarter earnings call May 3, 2022, Progressive CEO Tricia Griffith said that the company noticed "a pretty big increase" in take-up of the company's long-standing Snapshot product. Later, she added that "some consumers are trying to figure out [if] can they change their coverages or do things differently or add Snapshot … to reduce their prices."
And in August, Transunion and J.D. Power's co-reported "Loyalty Indicator and Shopping Trends" study found that in Q1 of 2022,
So while economic conditions challenge many aspects of the insurance business, for auto insurers, usage-based products remain a high priority for customer acquisition and retention in a tight market. That leads us to this year's check-in on where the top auto insurers, by U.S. market share as reported by the NAIC, stand in terms of product availability and size of their program.