The global usage insurance market is projected to grow at an impressive CAGR of 17% between 2021 and 2031. The market will exceed US$ 150 Bn by 2031 owing to increasing demand for paying the best insurance prices based on actual usage. This resulted in the drop in usage insurance sales during the FQ-20. In 2020, the market however surpassed valuation of US$ 30 Bn, registering growth at 10% CAGR.
“Usage-based insurance and telematics can provide a range of benefits such as reverse gear indication, speed threshold tracking, seat belt usage, hard braking, acceleration control, and voice guiding. These features are designed to reduce the risk of traffic accidents. These factors make both usage based insurance and telematics highly sought-after”, said a Fact.MR analyst.
Download Sample Copy of This Report:
https://www.factmr.com/connectus/sample?flag=S&rep_id=5352
Key pioneers
- Insure the Box Limited
- Allstate Insurance Company
- State Farm
- Uniqa Insurance Group AG
- Groupama
- Generali Group
- UnipolSai Assicurazioni S.p.A
- Liberty Mutual Group
- Allianz SE
- Progressive Corporation
Key Projections
- The market in the U.S. is expected to account for over 50% of total global usage insurance demand in forecast period.
- Europe is estimated to register expansion of market at 10% CAGR in projection period.
- Asia is anticipated to account for over 15% of overall market revenue between 2021 and 2031.
- By policy type, pay-as-you-drive (PAYD) segment is estimated to account for over 55% of total market share.
- By product, smartphone-based usage insurance is anticipated to expand at 9% CAGR between 2021 and 2031.
- By vehicle, commercial usage insurance to witness significant growth rate of 7% CAGR in coming years.
Growth Drivers:
- Increasing adoption of smartphones and telematics products across the globe is driving market growth.
- Integration of telematics and IoT in the vehicles will increase the adoption of usage-insurance, driving market growth in coming years.
- Increasing government’s initiatives to improve vehicle safety is boosting demand for usage insurance across the globe.
- Earnix, a global provider of advanced rating, pricing, and product personalization solutions for insurers and banks announced its acquisition of AI-Powered telematics provider Driveway Software Corporation’s assets. It will be joined by Driveways’ strong and highly capable team of domain-rich experts.
- On June 16, 2020, USAA is expected to acquire Noblr, a digital insurer offering behavior-based auto insurance. Dedicated to military personnel and their families, the company says its acquisition will help make it more competitive by upgrading its services. Financial strength was also cited as a factor as to why the company could acquire companies in this space and accelerate innovation.
Structure Insights
Fact MR provides an unbiased analysis of usage insurance market, presenting historical demand data (2016-2020) and forecast statistics for the period from 2021-2031. The study divulges compelling insights on the usage insurance market with a detailed segmentation on the basis of:
Policy Type
- Pay-how-you-drive (PHYD)
- Pay-as-you-drive (PAYD)
- Manage-how-you-drive (MHYD)
Product
- Black Box
- OBD Dongle
- Smartphone
- Others
Vehicle
- Passenger Vehicle
- Commercial Vehicle
Key Questions Covered in the Global Usage Insurance Market Report
- The report offers insight into usage insurance demand outlook for 2021-2031
- The market study also highlights projected sales growth of usage insurance market between 2021 and 2031
- Usage insurance sales survey identifies key growth drivers, restraints, and other forces impacting prevailing trends and evaluation of current market size and forecast and technological advancements within the industry
- Usage insurance Market share analysis of the key companies within the industry and coverage of strategies such as mergers and acquisitions, joint ventures, collaborations or partnerships, and others
Data on how far specific cars have been driven is gathered by a particular insurer and this is a new trend in automotive insurance. Insurance companies employ telematics, which are pre-installed in the car or supplemented with a plug-in device. As per the National Association of Insurance Commissioners (NAIC), auto insurers must employ telematics for all of their cars as part of the new insurance requirements. In-built telematics is a typical characteristic of newly acquired automobiles. Hence, many companies are providing usage-based insurance, which is boosting market expansion.
Drivers will be more motivated to change their driving behaviors if they are offered incentives for doing so. It will result in fewer traffic infractions and accidents, as well as fewer insurance claims. Usage-based insurance coverage can give immediate and continuing information regarding driving patterns, allowing for rapid computation of rates and savings. Thereby, bolstering usage insurance growth through 2031. Continuous research on usage-based insurance digitalization is driving the demand for sensors, such as wearable devices, car sensors, and smart applications used in mobile calls for new insurance services.
Get Customization on this Report for Specific Research Solutions:
https://www.factmr.com/connectus/sample?flag=RC&rep_id=5352
Contact:
US Sales Office
11140 Rockville Pike
Suite 400
Rockville, MD 20852
United States
Tel: +1 (628) 251-1583, +353-1-4434-232 (D)
Email : [email protected]