11 Questions to Ask Before Developing a UBI Strategy
1. What are your growth objectives for your auto insurance business?:
2. What segments of your business will be impacted the most?:
3. How significant is the impact that UBI will have on your market share and your profit margins? How fast will the impact occur?:
4. Which of your competitors are likely to be advantaged or disadvantaged from this opportunity?:
5. Do you believe that implementing a UBI program can help you achieve your growth and profit objectives?:
6. What value proposition will you offer in the UBI space? Is it the same or different than your value proposition for your legacy business?:
7. What segments of the market will your program target? Are these the same segments you target today? If they are not, what other capabilities will you need to build out to succeed?:
8. What essential features of a UBI program are needed to deliver on your value proposition?:
9. How long will it take to gather the necessary experience to confidently expand your program in the market?:
10. How long will it take to build the IT systems to support UBI?:
11. Regardless of whether you take the plunge into the UBI arena or not, how will you need to adapt your strategy for your legacy business?:
New research from Strategy Meets Action indicates that over 70 percent of personal and commercial insurers have usage-based insurance plans; here's where they need to start. For more insights on SMA's UBI research, read INN Senior Editor Chris McMahon's coverage by clicking here.
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