Category: Insurtech · Reviewed by Tim Roche, Director · PI & Commercial · Last reviewed 2026-06-05
UBI is the standard industry abbreviation for usage-based insurance, a category of insurance product that prices premium by reference to actual usage data captured from telematics devices, smartphone apps or other connected-vehicle data sources. Full treatment of pricing models, regulatory framework and market practice is in the principal entry.
Category: Insurtech Also known as: Usage-based insurance Coined: Late 1990s Related concepts: Usage-based insurance, Telematics insurance
UBI is the universal short form used in insurance, regulatory and academic writing for usage-based insurance products. It is commonly used in compound expressions: “PAYD UBI” (pay-as-you-drive), “PHYD UBI” (pay-how-you-drive), “smartphone UBI” (app-based variant), and “hybrid UBI” (combining mileage and behaviour).
When industry commentators discuss “UBI penetration” — the percentage of new motor business written on a usage-based basis — they are referring to the share of new business covered by usage-based pricing as opposed to traditional underwriting based only on declared variables. UBI penetration in the UK new business motor market has been growing steadily through the 2010s and 2020s, particularly in the younger-driver segment.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-05. Next review: 2026-12-05.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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