Skip links

Insurtech Telematics Technology and the Story of UBI

We track the timeline of usage based insurance (UBI) for the auto industry, telematics technology, and look how its developed and will transform the space 

The mobility and auto insurance industries are being transformed by Universal Basic Income and telematics-based insurance. However, it is also employed in other parts of the insurance sector. We look at who originated it, how it grew in popularity, and what the current demand means for future applications.


Technologies that birthed telematics 

The US Department of Defense created the Global Positioning System (GPS) technology in the 1960s. Simultaneously, Theodore G. Paraskevakos’ work on Caller ID paved the way for M2M (Machine to Machine) communication.


Early computer science 

In a report to the French government, scientists Simon Nora and Alain Minc were the first in the world to classify the technology and coined the term “Telematics.”

Earlt 80’s 

The EU takes note 

With the goal of improving road safety, the EU commissioned research on car telematics.

This was most likely the start of widespread telematics use in vehicles, as well as its current applications.

Early 90’s 

The first insurer recognizes telematics potential 

Progressive Insurance was one of the first companies to support Universal Basic Income. In the mid-1990s, they recognised the utility of telematics technology and developed a usage-based solution.

Early 2000’s 

First UBI insurance is launched 

Through a combination of GPS technology and cellular networks that recorded miles driven, Progressive Insurance Company and General Motors Assurance Company (GMAC) began to provide mileage-linked discounts. Additional benefits like roadside assistance and vehicle theft recovery were (and still are) frequently bundled with these reductions.

The future 

Automation, Al and Big Data 

We believe that in the not-too-distant future, the bulk of auto insurance policies will be usage-based. Increasingly automated technology and the deployment of driverless vehicles are driving this trend.

Leave a comment

This website uses cookies to improve your web experience.