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Market Research Report

Global Usage-Based Insurance Market - 2020-2027

Published by DataM Intelligence Product code 995743
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Global Usage-Based Insurance Market - 2020-2027
Published: March 11, 2021 Content info: 180 Pages
Description

Market Overview

Usage-based insurance (UBI) determines our premiums based on how we drive. UBI offers prime discounts to customers based on specific driving parameters (speed, acceleration, average time & distance driven, night driving and others) and behaviors. If we drive safely or infrequently, we will get discounts or cheaper premiums. In addition, UBI uses telematics to track real-world driving behavior, allowing the creation of risk profiles of customers based on real-world driving behavior. Moreover, the UBI offers various significant advantages such as decreased fraud as a result of having higher and better data to use in assessing claims, lower losses through better driving habits, as drivers are motivated to practice and improve their driving habits continually, deeper customer relationships, with opportunities to have more regular and positive interactions with customers (e.g., communications after an accident, updates on driving performance and premiums, even feedback after individual journeys if applicable), instead of just issuing bills and processing claims.

The global usage-based insurance market is estimated to reach USD XX billion by 2027 from the recorded market size of worth USD XX billion in 2019, growing at a CAGR of XX% during the forecast period.

Market Dynamics

The increasing accident is expected to boost the market growth of usage-based insurance during the forecast period. According to WHO, every year, approximately 1.35 million people die due to a road traffic crash. In addition, around 20-50 million people suffer from non-fatal injuries, with many incurring a disability resulting from their injury. In some countries, road traffic crashes cost most countries 3% of their gross domestic product. Moreover, UBI uses an OBD dongle that is becoming the most popular product category and is equipped with 27 million vehicles in 2020, representing a $475 million annual market for manufacturers, which is expected to increase the market growth during the forecast period.

Furthermore, the growing passenger car registration is expected to increase the market size during the forecast period. According to industry analysis, around 5934450 car registration has been done in January 2021. Moreover, growing demand in the number of connected cars bringing new UBI opportunities as

However, tracking mileage and behavior information in UBI programs has increased privacy concerns, and some states have enacted legislation requiring disclosure of tracking devices and practices. In addition, some insurers restrict the data they collect. Although not for everyone, permission for information sharing is growing as more mainstream technology devices (such as tablets, smartphones, and GPS devices) and social media networks (such as Twitter and Facebook) enter the market.

Segment Analysis

By type, the market is segmented into pay-as-you-drive (PAYD), pay-how-you-drive (PHYD), manage-how-you-drive (MHYD), distance-based insurance and others. By vehicle type, the market is segmented into passenger vehicles and commercial vehicles. By technology, the market is segmented into OBD I-II, smartphones, black box, hybrid, and others. By application, the market is segmented into IoT-based fleet management, semi-autonomous & autonomous car, artificial Intelligence & HMI in transportation, and others.

Pay-as-you-drive charges premiums based on the usage of the car. It is a plan that takes into account the km is driven by a car for a fixed time period and charges a premium based on it. In addition, the premium for this type of motor insurance is directly proportional to the usage of the car. Moreover, the PAYD offers various significant advantages such as lower car insurance premiums, customized cover as per preference, installation of free telematics device, floater coverage for multiple cars, third party coverage at all times and save big on car insurance premiums. In addition, the company also offers significant benefits such as customization, flexibility, low premium and telematics device.

Furthermore, it is a model of automotive insurance where policies depend upon the type of vehicle used, behavior, measured against time, distance, additional data, and location. Moreover, the company offers various significant advantages such as provides useful information, resulting in fair premiums, and make motor insurance cheaper. In addition, it has certain disadvantages such as can be expensive initially and not suitable for new drivers.

Geographical Analysis

North America holds the largest market share of the usage-based insurance for the car due to the increase in the use of connected cars in this region. The U.S dominates the market in this region, and it is expected by 2035, more than 330 million units in the United States will be connected to the internet, either in multiple ways or by embedded, tethered, or via smartphone integration. In addition, roughly 97%, the U.S. is anticipated to have the highest penetration rate of connected vehicles in 2035 and is expected to grow during the forecast period.

APAC is expected to be the fastest-growing market during the forecast period due to the shifting of the largest automotive manufacturing company and the increase in the accident. China is the largest automobile market worldwide, both in terms of demand and supply. In addition, China automobile registrations fell to 21 million units in 2019 and are expected to grow during the forecast period. Moreover, Europe and other regions are expected to contribute the significant market growth during the forecast period due to government regulation.

Competitive Landscape

The usage-based insurance market is a moderated fragmented with the presence of regional and global players. The competitive contour lies with the increase in the regional company and growing investment in upstream application. Cambridge Mobile Telematics, Allianz SE, AXA, Aviva, Allstate Corporation, Insure The Box Limited, Liberty Mutual Insurance, Progressive corporation, UNIPOLSAI ASSICURAZIONI S.P.A, Nationwide Mutual Insurance Company are the major player in the adhesive market. The major players adopted several growth strategies such as product launches, acquisitions, and collaborations, contributing to growing the usage-based insurance market globally.

Cambridge Mobile Telematics

The company offers various significant features in the product such as mobile sensing, and IoT devices give the most accurate data, measure phone distraction & other risky behavior, fast driver feedback that allows real behavioral change, detect crashes quickly & reconstruct details for claims, and data privacy that respects drivers.

Furthermore, the company runs on hundreds of different phones, using sensors to detect driving behavior for the easy use of an app paired with the company stick-on tag to give an extra layer of ground truth, providing the most accurate telematics data available. Moreover, the company uses high-frequency sensors to identify phone distractions, classify drivers or passengers, recognize speeding and hard braking, all without complicated installation. In addition, crash detection allows emergency services to respond to the exact location within 60 seconds; crash reconstruction provides claims adjusters with a detailed, data-driven account of a crash within 10 minutes.

Table of Contents

Table of Contents

1. Global Usage-Based Insurance Market Methodology and Scope

  • 1.1. Research Methodology
  • 1.2. Research Objective and Scope of the Report

2. Global Usage-Based Insurance Market- Market Definition and Overview

3. Global Usage-Based Insurance Market- Executive Summary

  • 3.1. Market Snippet by Type
  • 3.2. Market Snippet by Vehicle Type
  • 3.3. Market Snippet by Technology
  • 3.4. Market Snippet by Application
  • 3.5. Market Snippet by Region

4. Global Usage-Based Insurance Market-Market Dynamics

  • 4.1. Market Impacting Factors
    • 4.1.1. Drivers
    • 4.1.2. Restraints
    • 4.1.3. Opportunity
    • 4.1.4. Impact Analysis

5. Global Usage-Based Insurance Market- Industry Analysis

  • 5.1. Porter's Five Forces Analysis
  • 5.2. Regulatory Analysis
  • 5.3. Supply Chain Analysis
  • 5.4. Pricing Analysis
  • 5.5. Trade Analysis

6. Global Usage-Based Insurance Market- By Type

  • 6.1. Introduction
    • 6.1.1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Type
    • 6.1.2. Market Attractiveness Index, By Type
  • 6.2. Pay-as-You-Drive (PAYD)*
    • 6.2.1. Introduction
    • 6.2.2. Market Size Analysis, USD Mn, 2018-2027 and Y-o-Y Growth Analysis (%), 2018-2027
  • 6.3. Pay-How-You-Drive (PHYD)
  • 6.4. Manage-How-You-Drive (MHYD)
  • 6.5. Distance-Based Insurance
  • 6.6. Others

7. Global Usage-Based Insurance Market- By Vehicle Type

  • 7.1. Introduction
    • 7.1.1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Vehicle Type
    • 7.1.2. Market Attractiveness Index, By Vehicle Type
  • 7.2. Passenger Vehicles*
    • 7.2.1. Introduction
    • 7.2.2. Market Size Analysis, USD Mn, 2018-2027 and Y-o-Y Growth Analysis (%), 2018-2027
  • 7.3. Commercial Vehicles

8. Global Usage-Based Insurance Market- By Technology

  • 8.1. Introduction
    • 8.1.1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology
    • 8.1.2. Market Attractiveness Index, By Technology
  • 8.2. OBD I-II*
    • 8.2.1. Introduction
    • 8.2.2. Market Size Analysis, USD Mn, 2018-2027 and Y-o-Y Growth Analysis (%), 2018-2027
  • 8.3. Smartphones
  • 8.4. Black Box
  • 8.5. Hybrid
  • 8.6. Others

9. Global Usage-Based Insurance Market- By Application

  • 9.1. Introduction
    • 9.1.1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Application.
    • 9.1.2. Market Attractiveness Index, By Application
  • 9.2. IoT Based Fleet Management*
    • 9.2.1. Introduction
    • 9.2.2. Market Size Analysis, USD Mn, 2018-2027 and Y-o-Y Growth Analysis (%), 2018-2027
  • 9.3. Semi-Autonomous & Autonomous Car
  • 9.4. Artificial Intelligence and HMI in Transportation
  • 9.5. Others

10. Global Usage-Based Insurance Market- By Region

  • 10.1. Introduction
    • 10.1.1. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Region
    • 10.1.2. Market Attractiveness Index, By Region
  • 10.2. North America
    • 10.2.1. Introduction
    • 10.2.2. Key Region-Specific Dynamics
    • 10.2.3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Type
    • 10.2.4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Vehicle Type
    • 10.2.5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology
    • 10.2.6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Application
    • 10.2.7. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Country
      • 10.2.7.1. United States
      • 10.2.7.2. Canada
      • 10.2.7.3. Mexico
  • 10.3. Europe
    • 10.3.1. Introduction
    • 10.3.2. Key Region-Specific Dynamics
    • 10.3.3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Type
    • 10.3.4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Vehicle Type
    • 10.3.5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology
    • 10.3.6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Application
    • 10.3.7. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Country
      • 10.3.7.1. Germany
      • 10.3.7.2. United Kingdom
      • 10.3.7.3. France
      • 10.3.7.4. Italy
      • 10.3.7.5. Spain
      • 10.3.7.6. Rest of Europe
  • 10.4. South America
    • 10.4.1. Introduction
    • 10.4.2. Key Region-Specific Dynamics
    • 10.4.3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Type
    • 10.4.4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Vehicle Type
    • 10.4.5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology
    • 10.4.6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Application
    • 10.4.7. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Country
      • 10.4.7.1. Brazil
      • 10.4.7.2. Argentina
      • 10.4.7.3. Rest of South America
  • 10.5. Asia Pacific
    • 10.5.1. Introduction
    • 10.5.2. Key Region-Specific Dynamics
    • 10.5.3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Type
    • 10.5.4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Vehicle Type
    • 10.5.5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology
    • 10.5.6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Application
    • 10.5.7. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Country
      • 10.5.7.1. China
      • 10.5.7.2. India
      • 10.5.7.3. Japan
      • 10.5.7.4. Australia
      • 10.5.7.5. Rest of Asia Pacific
  • 10.6. Middle East and Africa
    • 10.6.1. Introduction
    • 10.6.2. Key Region-Specific Dynamics
    • 10.6.3. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Type
    • 10.6.4. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Vehicle Type
    • 10.6.5. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Technology
    • 10.6.6. Market Size Analysis, and Y-o-Y Growth Analysis (%), By Application

11. Global Usage-Based Insurance Market Competitive Landscape

  • 11.1. Competitive Scenario
  • 11.2. Market Positioning/Share Analysis
  • 11.3. Mergers and Acquisitions Analysis

12. Global Usage-Based Insurance Market Company Profiles

  • 12.1. Cambridge Mobile Telematics*
    • 12.1.1. Company Overview
    • 12.1.2. Product Portfolio and Description
    • 12.1.3. Key Highlights
    • 12.1.4. Financial Overview
  • 12.2. Allianz SE
  • 12.3. AXA
  • 12.4. Aviva
  • 12.5. Allstate Corporation
  • 12.6. Insure The Box Limited
  • 12.7. Liberty Mutual Insurance
  • 12.8. Progressive Corporation
  • 12.9. UNIPOLSAI ASSICURAZIONI S.P.A
  • 12.10. Nationwide Mutual Insurance Company

13. Global Usage-Based Insurance Market- DataM

  • 13.1. Appendix
  • 13.2. About Us and Services
  • 13.3. Contact Us
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