Study: 78% in Commercial Auto Insurance Business Researching Telematics

Approximately four of five (78%) commercial auto insurers are in the research phase of preparing for usage-based insurance products, but are not ready to implement the technology.

Source: SambaSafety | Published on October 11, 2023

telematics and auto insurance

Approximately four of five (78%) commercial auto insurers are in the research phase of preparing for usage-based insurance products, but are not ready to implement the technology, according to new research from The National Alliance for Insurance Education and Research in concert with SambaSafety, a provider of cloud-based risk management solutions.

The two organizations surveyed property-casualty insurance professionals in the commercial and personal lines businesses among agents, brokers and insurance companies. Other key findings of the report, titled, “From Perception to Practice: An Insight into Insurer Data Strategies and Sentiments,” are:

  • 72% of commercial insurance companies are offering or planning to offer a telematics-based product.
  • One-third of commercial auto respondents anticipate launching a usage-based insurance (UBI) product within the next one to two years.
  • More than half of agents report less than 10% adoption of usage-based insurance among their personal auto customers.
  • 15% of broker respondents offer telematics value-added services.
  • Agents and brokers say personal and commercial customers want a higher trust level in order to adopt telematics.

The survey, which polled 335 professionals, sought to uncover obstacles to adoption of telematics. More than six of 10 personal lines respondents said that intrusiveness, skepticism and trust were holding back the technology. Among commercial lines respondents, cited as challenges were variances in data formats among telematics service providers and differing terminology and event tracking among systems.

The survey explored benefits of telematics, finding that 63% of commercial lines carriers share insights on risk to help clients, brokers and agents mitigate risk and improve premiums. Roughly 55% of commercial carriers also offer on-demand training to help improve performance, while 50% of commercial insurers plan to increase the risk control resources offered to clients.

“In this dynamic era, where data steers our choices, it’s crucial for the insurance industry to remain informed, proactive and tactical,” says Paul Martin, CPCU, director of academic content for The National Alliance. “The report not only captures current industry sentiments but also provides a roadmap for the future; it encapsulates the evolving storyline of insurance, fueled by data, insights and modern technology.”

SambaSafety CEO Matt Scheuing says: “The survey results show that telematics technology has outpaced consumption, and usage falls short of full potential. But telematics offers the opportunity for the insurance industry to break out of the cycle of reacting to the rising cost of claims by raising premiums.

“Telematics enables an alternative approach,” Scheuing adds. “It provides a way to focus on granular risk by offering unparalleled visibility and objectivity, leading to fair and precise assessment of mobility risk — and to profitability.”

For more information about the report, visit

About SambaSafety

SambaSafety is a recognized innovator and leading provider of cloud-based risk management solutions for over 15,000 organizations with automotive mobility exposure, including many on Fortune’s Global 500 list. Employers and insurers benefit from SambaSafety’s continuous monitoring, intuitive insights, risk reduction tools and configurable pricing solutions. Through the collection, correlation and analysis of federal, state, local and telematics data sources, SambaSafety’s flexible, end-to-end capabilities enable businesses and insurers to better evaluate and mitigate driving risk, accelerate product development, reduce crashes and foster safer communities.

About The National Alliance

The National Alliance for Insurance Education & Research, a registered 501(c)(3), is an insurance education provider recognized throughout the industry as a preeminent resource for technical training, designations, and continuing education in risk management and insurance. Boasting over 150,000 program participants, the National Alliance has set the standard for industry education since its inception in 1969.