Blog: Pay-as-you-buy insurance - a customer choice-based concept

We are all familiar with the terms pay-as-you-drive and pay-how-you-drive linked to telematics motor insurance products, which are known as user-based insurance. Many acknowledge the concept revolutionised the industry, and telematics policies, which started out as niche products provided by specialist telematics insurers have since become a mainstream offer.

Telematics has created an acceptance of data sharing that paves the way for insurers and their customers to access the benefits from open banking data.

This blog highlights the emergence of the pay-as-you-buy insurance concept and how it can be applied to both commercial and personal lines.