Assistant Professor, SGH Warsaw School of Economics
The main objective of the book is to assess the potential consequences of the use of insurance telematics to reduce the effects of information asymmetry on the Polish market of compulsory motor insurance. The conducted research consisted in describing the expected behaviour of the models of the mandatory motor insurance market in relation to different systems regarding the use of telematics by insurers
Motor insurance in Poland plays a dominant role in the portfolios of most insurers. At the end of 2016, it accounted for a total of 60.27% of the direct gross written premium of non-life insurance sector, with the share of motor third party liability insurance (MTPL) accounting for 36.2%. Fierce competition and the diminishing diversification of the offer on the motor insurance market led to significant decreases in the margin, and hence, the income of insurers. Year 2016 brought the biggest loss ever. The technical loss of MTPL has remained in this segment for many years since 2007 and at the end of 2016 exceeded PLN 1 billion.
Although insurance telematics may be a source of competitive advantage, the Usage-Based Insurance (UBI) is still an insufficiently explored area, especially in the context of the Polish insurance market. Accordingly, the main purpose of this paper is to facilitate a better understanding of the topic through a review and summary of selected literature and research achievements, which may prove useful in a discussion about domestic UBI.