The global market for usage-based motor insurance is growing at a compound annual rate of 25% and will reach $US167 billion ($259 billion) by 2027, analysts at The Business Research Company say. 

That is up from $US68 billion ($106 billion) today.  

Fuse Fleet Director Luke Kelly says Australia’s fleet insurance industry has witnessed a transformative shift with the rise of usage-based insurance (UBI) models in recent years. Fuse was launched by Sydney-based brokerage DKG in April under a partnership with Swedish insurtech Greater Than. 

“This mindset is paving the road for a smarter and safer Australia,” Mr Kelly says. “By aligning premiums with individual behaviours and incentivising responsible driving, UBI empowers us to steer towards a future where accidents are minimised, premiums are personalised, and our impact on the environment is reduced.”  

Traditional fixed premiums and general risk evaluations are no longer the norm in fleet insurance, he says, giving way to telematics and data analysis to create personalised policies that change as drivers' behaviours and associated risks change.  

Benefits of UBI are real-time feedback on speed, braking intensity, and other factors, and prompts drivers to make safer choices; better premiums for those who adhere to speed limits, brake smoothly and accelerate responsibly, and identifying areas for improvement.  

“This self-awareness fosters a proactive approach to driving, as individuals work to refine their skills and minimise risk factors,” Fuse says. "Fleet insurers can also leverage this data to provide personalised recommendations and rewards, creating a collaborative partnership aimed at creating safer roads and more responsible drivers.” 

Fuse says its digital end-to-end claims management solution ensures better, faster, and cost-efficient claims for fleets. It rewards safe driving and enables accurate pricing of premiums, making use of Greater Than’s pattern AI technology to convert GPS data into crash probability insights. 

The predictive AI capabilities turn GPS data into a Crash Probability Score for every driver. 

DKG was co-founded by Steadfast MD & CEO Robert Kelly more than 25 years ago as Delaney Kelly Golding and is today headed by his sons, Robert Jnr and Luke. 

The Australian fleet market is made up of around 485,000 businesses operating around 3.9 million vehicles and Fuse says it offers this sector greater control by connecting telematics data through an API.