Increasing demand for telematics, connected car services, and IoT in vehicles and high usage of smartphones are driving the growth of the usage-based insurance market globally. The usage-based insurance market is projected to reach USD 125.
New York, May 12, 2020 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Usage-Based Insurance Market for Automotive by Package type, Technology type, Vehicle type, Vehicle age, Device Offering, Electric & Hybrid vehicles And Region - Global forecast to 2027" - https://www.reportlinker.com/p05532148/?utm_source=GNW
7 billion by 2027 from an estimated USD 24.0 billion in 2019, at a CAGR of 23.0% during the forecast period. All major players such as UnipolSai Assicurazioni S.p.A, Progressive Casualty Insurance Company, Allstate Insurance Company, State Farm Automobile Mutual Insurance Company, Liberty Mutual Insurance Company, and other UBI technologies providers are developing solutions and technologies that can accurately analyze vehicle data and driver behavior. The companies aim to improve their UBI offerings by accurate determination of premiums.
The increasing adoption of telematics and advancements in safety technology have helped reduce claims.The European Union has mandated e-assistance systems in case of an accident.
The eCall system, mandatory for all new EU vehicles since March 2018, speeds up emergency-response times by 40–50%.Also, Russia mandated a similar system for new cars in the end of 2017, while Mexico has mandated radio-frequency-identification (RFID) tags to bolster vehicle-antitheft systems.
Many other countries, including China, Germany, Singapore, and South Africa, have voluntary systems that provide UBI incentives. However, the ambiguity over regulations and legislations and lack of standardized systems can hinder market growth.
PAYD segment is expected to be the largest market by package type
Pay-As-You-Drive (PAYD) is estimated to be the largest segment during the forecast period.The key advantages of PAYD are ease of deployment, no complex algorithms for working, and cost-effectiveness for the insurer as well as consumers.
Secondly, PAYD insurance encourages consumers to drive less and drive green.This reduces vehicle emissions and contributes to the worldwide efforts for environment betterment.
As people drive less, the accidental risks associated with drivers reduce.Additionally, PHYD and MHYD gather multiple data points about driver behavior, which the driver may not be comfortable sharing.
This makes PAYD the preferred choice. In addition, PHYD and MHYD record rash driving or speeding that attract higher premiums. Hence, many users stick to PAYD insurance plans.
On-Road Vehicle segment is expected to grow at the highest CAGR
On-road vehicle is estimated to be the fastest growing market during the forecast period.Initially, the adoption of usage-based insurance is likely to be less in on-road vehicles.
As the penetration of UBI is expected to increase in new vehicles, the UBI market for on-road vehicles will also increase at a rapid pace.The major countries that are expected high penetration of UBI are the US, Italy, Germany, UK, and China.
The UBI penetration in vehicle parc is expected to increase with a double growth rate in these countries.
The Asia Oceania market is expected to register the highest growth during the forecast period
The Asia Oceania usage-based insurance market is estimated to be the fastest-growing regional market.The growing adoption of IoT and telematics in China, Japan, South Korea, and India is expected to drive market growth in the region.
Rising pollution in APAC countries such as China is a major concern. Thus, the governments in this region are focusing on less CO2 emission as well as fuel-efficient solutions.
Several companies plan to integrate telematics and IoT enabled navigation in new vehicles to reduce carbon emission and offer real-time emission data.For instance, Maruti Suzuki launched Suzuki Connect, ‘an advanced telematics solution for its customers’ in India.
Similarly, the Ministry of Industry and Information Technology and the Standardization Administration of China together issued the Guidelines for Developing the Standards System of the Telematics Industry (Intelligent and Connected Vehicles). Such initiatives would boost the growth of vehicle telematics, which in turn would drive the growth of usage-based insurance market during the forecast period.
In-depth interviews were conducted with CEOs, vice-presidents, marketing directors, innovation and technology directors, and executives from various key organizations operating in this market.
• By Company Type: UBI Providers- 50%, UBI Technology Providers - 50%
• By Designation: C Level - 20%, D Level – 70%, and Others - 10%
• By Region: Asia Pacific- 20%, Europe - 30%, North America - 40%, Rest of the World – 10%
The usage-based insurance market is led by globally established players such as UnipolSai Assicurazioni S.p.A (Italy), Progressive Casualty Insurance Company (US), Allstate Insurance Company (US), State Farm Automobile Mutual Insurance Company (US), and Liberty Mutual Insurance Company (US).
The usage-based insurance market is segmented on the basis of package type [Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD)], technology (OBD-II, smartphone, embedded system, black box, and other technologies), vehicle type (light-duty vehicle and heavy-duty vehicle), vehicle age (new vehicles and on-road vehicles), device offering type (bring your own device (BYOD) and company provided), electric & hybrid vehicle type (BEV, HEV, and PHEV), and region (Asia Oceania, Europe, North America, and RoW). The study also includes an in-depth competitive analysis of the key players in the market along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report:
The report will help the market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall usage-based insurance market and the sub-segments.This report will help stakeholders understand the competitive landscape and gain insights to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
Read the full report: https://www.reportlinker.com/p05532148/?utm_source=GNW
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