Introduction
Technology is rapidly changing the commercial fleet industry, along with this telematics and GPS solutions are altering how fleet managers monitor their assets. With the rise of these groundbreaking technologies, insurance companies are also using telematics.

Telematics has led to the development of usage-based insurance (UBI). This insurance structure bases premiums on driver safety scores, monitored via OBDs or smartphones. The telematic system tracks driver’s trips and assigns scores based on their driving behavior such as speeding, hard braking and fast acceleration. Vehicles with drivers having a good driving score can avail insurance at a low premium. In some cases, fleet owners can save up to 40 percent if their fleet and driver safety scores are at a good mark, ensuring reduced cost. 


The UBI market is growing each year. Between 2015 to 2016, the market grew by 32 percent.   The global automotive usage-based insurance (UBI) market was forecast to grow to 105.12 billion U.S. dollars by 2027 Pay as you drive (PAYD) and pay how you drive (PHYD), is the practice of collecting driving data from a vehicle to calculate the auto premium of the respective drive. This insurance structure is almost a no-brainer since it’s effective in identifying less risky insurers and leads to reduced cost and increased efficiency.

Reducing Risk with UBI and Telematics
UBI offers additional benefits for both carriers and consumers leading to an increase in safe driving habits, thereby creating fewer accidents. Telematics-based fleet management tools like driver scorecards, trend reports, and in-vehicle driver feedback can coach drivers to reduce speeding and aggressive driving behaviors, reduce idling, and increase productivity. Telematics data makes it easier to understand what needs to be done to become a better driver. Continuous feedback on driving behavior can also help increase fuel economy by reducing quick bursts of acceleration and hard stops.

How Usage based Telematics work
UBI relies on telematics to collect data on driving behavior. Although, traditional parameters like vehicle type and driving record are still part of the equation. Telematics data provides greater accuracy in establishing fault when settling claims and also helps tracking and recovering stolen vehicles.

Through a telematics device, the insurer can capture several types of information, such as :

  • Miles driven
  • Where and when you drive
  • Acceleration, braking, and cornering
  • Speed
  • Distracted driving
    From the data, the insurer can better assess risk and charge a more accurate amount.

Launch Usage-based Insurance Programs with Tangerine
Tangerine’s Platform enables you as an insurer, significant flexibility to support various usage-based insurance models maximizing technology and data analytics to retain loyal and profitable customers.

  • Choose one or more policies i.e. Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD).
  • Insightful incident history helps you develop the right product strategy and pricing for your customers.
  • Whatever your objectives, Tangerine will work with you to deploy a highly configurable platform along with white-label apps, customizable scoring mechanism and analytics tailored to your requirements.