Selbyville, Delaware, Dec. 06, 2022 (GLOBE NEWSWIRE) --
The usage-based insurance market is expected to record a valuation of USD 350 billion by 2032, according to a new research report by Global Market Insights Inc. The study claims that the robust landscape of the automobile sector, backed by the ongoing proliferation of connected car technologies, will drive the adoption of telematics insurance programs. The significant rise in income levels across developed and developing countries and the expanding youth populace have propelled the sales of autonomous cars, causing a massive boom across the four-wheeler industry.
Based on estimates by the National Development and Reform Commission (NDRC), China, the country anticipates the share of smart cars with partially or fully autonomous functions to reach 50% of the new vehicle sales by 2025. On the other hand, the annual automobile production in India in 2022 stood at 22.93 million units. The expanding automobile fleet, in tandem with the rapid growth of 5G technology, enabling more efficient data collection, will accelerate business growth.
Request for a sample of this research report @ https://www.gminsights.com/request-sample/detail/3020
Usage-based insurance market from the PAYD package segment is poised to witness nearly 26% growth rate between 2023 and 2032. PAYD insurance programs finalize premium costs based on the number of kilometers the car is driven. Insurance providers have been introducing additional discounts, features, etc., to ramp up their sales trajectory. Furthermore, supplementary benefits such as no installation charges, customized protection, reduced premium cost, and own damage and third-party liability cover offered by these programs will enhance their adoption.
The telematics-based PAYD segment recorded for 22% of the global usage-based insurance market share in 2022 due to the rising technological advancements and the consistent efforts of the leading insurance companies toward developing a user-friendly interface to derive better customer engagement. For instance, in September 2022, Cambridge Mobile Telematics (CMT) launched FuelStar, a new application that enables consumers to save up to 40% on gas by guiding them on how to drive more efficiently.
Usage-based insurance (UBI) market size from the smartphone technology segment is predicted to observe more than 30.5% CAGR till 2032. An increasing number of car insurance providers have been utilizing insurance telematics and smartphones to reduce costs associated with claims by keeping track of car acceleration, turns, braking, speed, and distraction. In January 2021, AXA chose Cambridge Mobile Telematics to power its young driver application and make a shift toward a smartphone-centric offering from OBD-centric.
The passenger vehicle segment hold over 83% share of the usage-based insurance market in 2022. This growth is attributed to a noticeable rise in the production and sales of passenger vehicles globally. Based on estimations by the International Organization of Motor Vehicle Manufacturers (OIACA), more than 14 million passenger cars were registered in the European Union and over 7 million passenger cars were sold in the Americas in 2021, depicting positive growth prospects for the industry.
North America usage-based insurance market held more than 40% of the revenue share in 2022. The improving technological landscape and the skyrocketing sales of connected and autonomous vehicles are slated to drive business expansion across the region. Besides, a number of telematics insurance companies integrating advanced solutions to deliver better packages & schemes will further proliferate the regional industry progression.
Leading players operating in the UBI market are ARGO Data Resource Corporation, Allstate Insurance Company, Aviva plc, AXA Equitable Life Insurance Company, and others. These leaders are focusing on offering customized insurance coverage to their customers to strengthen their business standing.
Request for customization of this research report @ https://www.gminsights.com/roc/3020
Partial Table of Contents (ToC) of the report:
Chapter 3 Usage-based Insurance Market Insights
3.1 Introduction
3.2 Impact of COVID-19 outbreak
3.3 Impact analysis of Russia-Ukraine war
3.4 Usage-based insurance industry ecosystem analysis
3.5 Advantages/features of UBI
3.6 Working/Architecture of UBI
3.7 UBI policy penetration (2022-2032)
3.8 UBI vs traditional automotive insurance
3.9 Technology & innovation landscape
3.10 Patent analysis
3.11 Investment portfolio
3.12 Industry news
3.13 OBD Standards
3.14 Regulatory landscape
3.15 Industry impact forces
3.15.1 Growth drivers
3.15.1.1 Growth of the automobile industry
3.15.1.2 Shifting focus towards remote diagnostic technology
3.15.1.3 Growth in the number of the connected cars bringing new UBI opportunities
3.15.1.4 Rising penetration of smartphones integrated with vehicle connectivity systems
3.15.1.5 Rapid use of UBI by insurance companies to improve profitability
3.15.1.6 Growing trend of Try-Before-You-Buy (TBYB) insurance model
3.15.2 Industry pitfalls & challenges
3.15.2.1 Data security and privacy concerns
3.15.2.2 Data quality issues with smartphone based UBI system
3.15.2.3 Increasing compatibility issues
3.16 Growth potential analysis
3.17 Porter’s analysis
3.18 PESTEL analysis
Browse Our Reports Store – GMIPulse @ https://www.gminsights.com/gmipulse
About Global Market Insights Inc.
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.
