Usage-Based Insurance Pilot
Employer
Liberty Mutual
Position
Lead UX Researcher & Designer
Key Responsibilities
Market Research · UX Research · User Experience Design · Stakeholder Management
01.-
Overview
Usage-based insurance in asia
Liberty Mutual aimed to explore the viability of usage-based insurance (UBI) in the Asian market, leveraging successful implementations of pay-as-you-drive concepts in Brazil and Chile. While these type of insurance are common in the Americas, UBI offerings remain relatively nascent in Asia. The project’s goal was to identify the right market for a pilot and assess the feasibility of launching such a product. Thailand emerged as the most promising market.
02.-
The Challenge
Regulatory approval
In Thailand, all insurance products require approval from the Office of Insurance Commission (OIC), a process that can take 6–12 months—far too long for the pilot timeline. This posed a significant challenge in introducing a true pay-as-you-drive product.
03.-
The Solution
Reward-based solution
To bypass regulatory delays, we adapted the existing annual premium insurance model into a rewards-based solution:
- Customers tracked their monthly driving distances via our app.
- Rewards were provided in the form of digital money, redeemable for e-commerce vouchers. This approach allowed us to test user engagement without altering core product structures.
04.-
Process & Deliverables
From Market Insights to Pilot Execution
Market Analysis
We analyzed Liberty Mutual’s operating countries in Asia, evaluating factors like driving behavior, competition, and market appetite. Thailand emerged as the most promising market.
Customer Research
Conducted qualitative and quantitative studies to understand target customer needs and preferences. We also identified local e-commerce partners that could enhance customer engagement.
Prototyping & Validation
Created a product prototype and tested it with potential users to gather insights and refine the solution.
Pilot Launch
The pilot was launched within a month and limited to 100 participants, running for three months to collect behavioral and usage data.
05.-
Results & Insights
The pilot revealed critical insights
- While the rewards model attracted some interest, it was insufficient to drive sustained engagement.
- Customers found the rewards too small or too slow to accumulate, limiting their appeal.
- The market appetite for UBI in its current form was low, and further investment in this product was not recommended.
06.-
Key Takeaways & Impact
The pilot highlighted the importance of aligning product offerings with local market expectations and regulatory constraints. It provided Liberty Mutual with data-driven insights, enabling them to make informed decisions about UBI investments in Asia.
Although the pilot indicated low viability for a full UBI rollout, it demonstrated the value of rapid prototyping and localized testing in de-risking product launches in emerging markets.