 Insurtech, sensor data, and changes in customers' coverage choices: Evidence from usage‐based automobile insuranceMiremad Soleymanian, Charles B. Weinberg and Ting Zhu Journal of Risk & Insurance, 2025, vol. 92, issue 1, 227-256 Abstract: In this paper, we examine the role of usage‐based auto insurance on customers' decisions to change their insurance coverage at the renewal. Using a sample of 135,540 customers, we study whether usage‐based insurance (UBI) can facilitate the upselling and cross‐selling efforts of the firm, possibly leading to higher coverage choices and additional insurance product purchases. Our results suggest that UBI customers are more likely to change their coverage choice than non‐UBI customers at first (but not second) renewal. Both price discounts and the information provided by UBI affect the customers' coverage changes. Among UBI customers, those who get higher UBI discounts are more likely to both increase their insurance coverage (upselling) and add the comprehensive coverage option (cross‐selling), which is not directly related to driving behavior at the time of first (annual) renewal. Moreover, customers who have received more negative feedback (daily hard brakes) are more likely to increase their insurance coverage. Date: 2025 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:jrinsu:v:92:y:2025:i:1:p:227-256 Ordering information: This journal article can be ordered from Access Statistics for this article Journal of Risk & Insurance is currently edited by Joan T. Schmit More articles in Journal of Risk & Insurance from The American Risk and Insurance Association Contact information at EDIRC. |
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