Chennai, Nov 26 (IANS): Software developer Tech Mahindra Ltd. Wednesday announced the launch of usage-based insurance (UBI) solution, a big data and predictive analysis driven platform for auto-insurers.

In a statement here, Tech Mahindra said the UBI solution allows the auto-insurers to adjust premiums according to the actual usage patterns of individual drivers instead of industry averages.

The platform is flexible to fit to the growing needs of global insurance enterprises, where the market is expected to grow $100 billion plus by the end of the decade, the statement said.

According to the statement, the solution utilises the capabilities of Tech Mahindra and AT&T in the areas of multi-vertical, engineering and infrastructure capabilities.

"As a result of this, the global insurers can reduce their claim costs by up to 20 percent, while reducing eligible insured driver premiums up to 40 percent. This usage based insurance solution is hosted on the seamless AT&T cloud and served through AT&T's global Machine-to-Machine (M2M) capabilities," the statement said.

"Global insurers and reinsurers are increasingly looking towards telematics-based insurance products in the pursuit of competitive and differentiated offerings in the marketplace," Ravi Vasantraj, head-banking, financial services and insurance (BFSI) at Tech Mahindra was quoted as saying in the statement.