Autoinsurance.com: Usage-Based Auto Insurance Race Heating Up

Los Angeles, CA (PRWEB) July 20, 2012
Sprint announced Thursday that it is offering a trial run for use of its technology suite to insurers seeking to establish usage-based insurance (UBI) programs, further complicating an already crowded fight among auto insurers who are capitalizing on an increasingly popular coverage option, according to autoinsurance.com.
Sprint’s Integrated Insurance Solutions(IIS) employs a “cloud-based system” that collects driver data that can be analyzed by auto insurance companies for rating purposes and presented to policyholders so that they can review their habits on the road. The system utilizes the telecommunications giant’s nationwide 3G network to transmit the data.
Sprint is offering IIS as a three-month “jump start” program to all insurers.
The offering is the latest in the arena of UBI, which bases coverage rates on a motorist’s habits behind the wheel and other driving data. For example, frequent hard braking can run up costs, while the opposite can lead to discounts.
IIS technology was tested in a pilot program in Arizona through a partnership with Esurance,accor ding to a Sprint statement.
Esurance recently launched its first UBI program in Texas “based on the success of that program,” adding yet another player in the race between insurers for the most-effective UBI program.
The company's offering a fully established network for driver monitoring could make it much easier for more insurers to offer usage-based discounts. Progressive already has its usage-based program, which it developed on its own, available in about 80 percent of the country.
Last week, Progressive announced that its UBI program, called Snapshot, would be open to policyholders at competing insurers as a one-month trial. Participants who test-run the program will be able to review their possible coverage savings before deciding if they want to switch insurers.
Progressive’s Snapshot has long been the largest UBI program in the market but has since seen competitors’ offerings edge into its territory.
In May, State Farm announced a partnership with Ford in which cars equipped with the automaker’s SYNC connectivity systems will be able to enroll in its UBI program. Under the partnership, such vehicles will be ready to participate in State Farm's Drive Safe & Save upon purchase.
The burgeoning UBI market has also produced some nasty competition. The Hartford and State Farm are currently facing a lawsuit brought by Progressive, which alleges that it is "suffering from the effects" of patent infringement.
Copyright:(c) 2012 PRWEB.COM Newswire

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Replacing Misguided Health Care Law Begins with Repeal

Last week, the House voted on a bipartisan basis to repeal President Obama's misguided health care law. I voted in favor of repealing the law for five reasons.

First, it increases the cost of care. The non-partisan Congressional Budget Office found that the law will actually increase health insurance premiums for families by $2,100, in direct contrast to the President's campaign trail promise that his plan would reduce premiums by $2,500.

Second, it would cause twenty million Americans to lose their employer-sponsored health insurance according to the non-partisan Congressional Budget Office. The Obama Administration's own Department of Health and Human Services estimates that 80 percent of small businesses and 64 percent of large businesses will discontinue offering health insurance to their employees.

Third, it interferes in the doctor-patient relationship. The law creates 159 new boards, offices, and panels within the federal government to make health care decisions for individuals.

Fourth, it piles more debt on our children and grandchildren. At a time when we already borrow 40 cents on every dollar the government spends, the law would add another $1.8 trillion over the next decade. We do not have the money.

Fifth, it is a job killer. The Congressional Budget Office estimates that nearly 800,000 jobs will be lost because of Obamacare. As last week's jobs report made clear, we cannot afford to further erode the employment situation.

While I remain committed to repealing this misguided law, we must work to reform the underlying problems in our health care system. As opposed to the divisive politics and underhanded tactics used to enact it, we should come together and put our best ideas forward to replace the law.

To this end, I have cosponsored reforms that would:

Enact Medical Liability Reform

Sensible tort reforms would cut back on unnecessary tests and procedures that are only ordered to defend against frivolous lawsuits, saving patients time and irritation while saving all of us money.

Allow Interstate Competition for Health Insurance

Allowing Americans to buy the same plans available to residents of other states would increase competition and help reduce costs while providing more choice.

Source: http://insurancenewsnet.com/article.aspx?id=350541