IDEAS home Printed from https://ideas.repec.org/a/bpj/apjrin/v19y2025i2p145-171n1004.html
   My bibliography  Save this article

How do Consumers Think About Usage-Based Auto Insurance? –A Survey Analysis from Taiwan

Author

Listed:
  • Peng Jin-Lung

    (Department of Risk Management and Insurance, National Chengchi University, Taipei, Taiwan)

  • Chen Yi-Fan

    (Department of Risk Management and Insurance, National Chengchi University, Taipei, Taiwan)

  • Chen Yen-Chih

    (The Bachelor’s Degree Program in Financial Engineering and Actuarial Science, 198403 Feng Chia University College of Finance , Taichung, Taiwan)

Abstract

Despite the inherent benefits of usage-based auto insurance (UBI), such as loss prevention and reduced premiums, the UBI market has encountered limitations hindering its expansion in practical terms. This study aims to explore the attitudes of consumers towards UBI and the pivotal factors influencing their decision to adopt UBI. According to the survey, a better understanding of the rationale behind pay-as-you-drive auto insurance (PAYD) and pay-how-you-drive auto insurance (PHYD) plays an important role in policyholders’ acceptance. In addition, consumers with higher auto insurance premiums and individuals willing to share their data are more likely to buy UBI. Our research suggests that the promotion of UBI should be aligned with increasing individuals’ willingness to share personal information and reducing privacy concerns. This could not only increase the willingness to purchase UBI but also help balance discount expectations between policyholder and insurer.

Suggested Citation

  • Peng Jin-Lung & Chen Yi-Fan & Chen Yen-Chih, 2025. "How do Consumers Think About Usage-Based Auto Insurance? –A Survey Analysis from Taiwan," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 19(2), pages 145-171.
    • Handle: RePEc:bpj:apjrin:v:19:y:2025:i:2:p:145-171:n:1004
    DOI: 10.1515/apjri-2024-0015
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/apjri-2024-0015
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/apjri-2024-0015?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    usage-based auto insurance; UBI; privacy concerns; insurtech; auto insurance;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:apjrin:v:19:y:2025:i:2:p:145-171:n:1004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyterbrill.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.