Telematics and usage-based insurance are expected to cause significant changes in personal auto insurance, even based on conservative projections, according to a report from Strategy Meets Action. Having usage-based insurance in 10% of the market in 2020, for example, would involve 25 million vehicles, and "that has strong implications for the rest of the insurance market," said Richard Welch, one of the report's authors. "If even 10% [of policyholders] move into this space, it will have a significant disruptive impact on the market as a whole."

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