One of the main advantages of usage-based insurance is greater flexibility. Traditional insurance policies tend to be based on a one-size-fits-all approach, which does not take into account the differences between customer segments that, while sharing some characteristics, have profiles that are in many ways irreducible. UBI allows customers to pay for what they have actually used or consumed, either for a short-term period or on a pay-per-use basis. This greater flexibility means that policyholders only pay for the coverage they actually need, and do not have to bear costs that are almost certainly higher because they are provided for by a fixed scheme that tends to flatten the specifics.
Lower costs
Another benefit of usage-based insurance is cost savings. By allowing customers honduras whatsapp resource to pay based on actual consumption – and the premium is adjusted over time based on historical behavior – UBI is often more affordable than traditional insurance policies. The savings become especially significant for those insured who do not use their coverage frequently or who only need coverage for a short period of time.
Usage-based policies streamline, simplify and speed up the process of requesting and purchasing insurance, which has traditionally been slow, full of friction and sometimes frustrating: customers can quickly and easily request coverage online. In this way, policyholders save precious time by no longer having to physically go to a branch and, for insurance companies, operating and management costs are reduced as the switch off from physical channels occurs.