The insurance industry is experiencing a paradigm shift with the emergence of usage-based insurance (UBI) programs, which leverage telematics and data analytics to personalize insurance pricing based on individual driving behavior. This project seeks to analyze the adoption of UBI in the insurance industry, focusing on its impact on traditional pricing models, risk assessment, and consumer behavior. By exploring the implications of UBI for insurers and policyholders, this research aims to provide valuable insights into the evolving landscape of insurance pricing and risk management.

The introduction of UBI has raised important questions about its potential to incentivize safer driving habits, improve risk assessment accuracy, and enhance the overall transparency of insurance pricing. This study will delve into the benefits and challenges of UBI adoption, shedding light on its capacity to revolutionize the insurance industry's approach to pricing and risk assessment. By doing so, the research aims to offer recommendations for insurers and policymakers to navigate the adoption of UBI, ensuring its responsible and effective integration into insurance pricing models and regulatory frameworks.