Selbyville, Delaware, June 03, 2021 (GLOBE NEWSWIRE) --
Global Market Insights Inc. has recently added a new report on the usage-based insurance market which estimates the market valuation for UBI will cross USD 125 billion by 2027. Growing adoption of in-vehicle connected insurance solutions for reducing unanticipated claims and promoting safe driving practices is driving industry growth.
The growth in UBI market is attributed to the growing automobile industry, technological advancements in both developing & developed countries, and shifting consumer demand toward more efficient smart vehicles. The increasing production of passenger & commercial cars is driving the adoption of usage-based insurance products. The widespread adoption of in-car technologies to attract more customers to UBI as they are willing to share their driving information for personalized insurance quotes is another factor fueling the market demand.
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The Pay-As-You-Drive (PAYD) segment is anticipated to grow at a CAGR above 20% from 2021 to 2027. PAYD plays an important role as it helps in monitoring the mileage driven and pricing policies based on that mileage. PAYD promotes safe driving as customers will be charged more in case they do not drive well. Under the PAYD programs, the companies offer several new products ranging from low-mileage discounts to short-term and on-demand products. This creates more opportunities for enterprises to offer more personalized insurance services to sustain stiff competition.
The smartphone segment is expected to hold above 15% of the usage-based insurance market share in 2020 owing to the widespread adoption of smartphone-based telematics applications that provide various vehicle parameters such as driving behavior and fuel consumption. The emergence of smartphone technology has made UBI more accessible to consumers and affordable for insurance providers. This is anticipated to support the market growth over the forecast period.
The passenger vehicle segment is projected to witness market share over 80% by 2027 propelled by the widespread adoption of Blackbox and OBD devices to monitor and improve service areas such as navigation, information, and vehicle health. The increasing demand to promote passenger safety is enabling SMEs to deploy UBI solutions.
Europe UBI market is set to grow significantly with a CAGR of more than 20% during 2021 to 2027 driven by the enforcement of more stringent fuel regulations and mandatory OBD requirements by the European Commission in the region. In addition, the presence of several automobile manufacturers and their growing brand value & sales are anticipated to support the market growth over the forecast period.
Several companies operating in the region are focusing on strategic partnerships with insurance providers to launch innovative UBI solutions for customers. For instance, in May 2019, TrueMotion, a leading smartphone-based telematics platform, partnered with Unipol Group, a leading automotive insurance provider in Italy, to launch Italy’s first smartphone-only telematics program. This partnership helped the company to provide next-generation auto insurance across the country.
The insurance companies operating in the market are focused on developing innovative solutions. For instance, in May 2020, Edelweiss General Insurance (EGI) a cloud native insurer, launched an innovative app-based Motor OD floater policy Edelweiss SWITCH. The new UBI solution launched under IRDAI's Regulatory Sandbox will allow vehicle owners to SWITCH their motor insurance on and off based on usage. This launch helped the company to strengthen its portfolio and acquire a competitive position in the market.
Some major findings of the UBI market report include:
- The adoption of telematics and other communication technologies to monitor the driving patterns across the transportation and logistics sectors is supporting the market growth.
- Europe is anticipated to hold a significant market share in the UBI market due to the increasing number of connected cars with built-in telematics solutions.
- Major players operating in the UBI market are Allianz SE, Danlaw, Inc., Cambridge Mobile Telematics, Allstate Insurance Company, Desjardins Group, UnipolSai Assicurazioni S.p.A., and Liberty Mutual Insurance.
- The companies operating in the market are focusing on the integration of new advanced AI and machine learning technologies in their UBI solutions to cater to the diverse customer requirements.
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Partial chapters of report table of contents (TOC):
Chapter 2 Executive Summary
2.1 Usage-based Insurance (UBI) industry 360º synopsis, 2016- 2027
2.1.1 Business trends
2.1.2 Region trends
2.1.3 Package trends
2.1.4 Technology trends
2.1.5 Vehicle type trends
Chapter 3 Usage-based Insurance (UBI) industry Insights
3.1 Introduction
3.2 Industry segmentation
3.3 COVID-19 impact
3.3.1 By region
3.3.1.1 North America
3.3.1.2 Europe
3.3.1.3 Asia Pacific
3.3.1.4 LAMEA
3.3.2 Impact by value chain
3.3.3 Impact by competitive landscape
3.4 Usage-based Insurance (UBI) ecosystem analysis
3.4.1 Insurance companies
3.4.2 Automakers
3.4.3 Telematics solution providers
3.4.4 Smartphone providers
3.4.5 Telecom service providers
3.4.6 OBD device manufacturers
3.4.7 End users
3.5 Advantages/features of UBI
3.6 Working/Architecture of UBI
3.7 UBI policy penetration (2019-2030)
3.7.1 North America
3.7.2 Europe
3.7.3 Asia Pacific
3.7.4 LAMEA
3.8 UBI vs traditional automotive insurance
3.8.1 North America
3.8.2 Europe
3.8.3 Asia Pacific
3.8.4 LAMEA
3.9 Technology & innovation landscape
3.9.1 IoT
3.9.2 AI and machine learning
3.9.3 5G
3.9.4 Manage-How-You-Drive (MHYD) – we take complete 3rd chapter here.
About Global Market Insights
Global Market Insights Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.