Usage Based Insurance Market Expected To Reach USD
New York, June 18, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the publication of the report “Usage Based Insurance Market for ICE and Electric Vehicles by Package, Technology, Vehicle Age, Device Offering and region – Global forecast to 2026 “- https://www.reportlinker.com/p05532148/?utm_source=GNW
Companies aim to improve their UBI offerings by accurately determining premiums.
The growing adoption of telematics and advancements in security technology have helped reduce complaints. The European Union has mandated electronic assistance systems in the event of an accident.
The eCall system, mandatory for all new EU vehicles since March 2018, speeds up emergency response times by 40-50%. In addition, Russia made a similar system mandatory for new cars at the end of 2017, while Mexico made radio frequency mandatory. identification tags (RFID) to strengthen vehicle anti-theft systems.
Many other countries, including China, Germany, Singapore, and South Africa, have voluntary systems that offer UBI incentives. However, ambiguity over regulations and legislation and the lack of standardized systems can hamper the growth of the market.
According to the OICA, passenger car sales fell from 63.7 million in 2019 to 53.6 million in 2020, showing a 15.9% drop due to the pandemic. However, the decline in sales statistics did not impact the consumer insurance market at all. For example, according to the Insurance Information Institute (III) and other secondary sources (insurancenewnet.com, blogs, articles, etc.), UBI has received a boost during the COVID-19 pandemic. People were comfortable that their insurance premiums were based on the number of kilometers traveled. Thus, in the years to come, the UBI market should experience significant growth.
The PAYD segment is expected to be the largest market by type of plan
Pay-As-You-Drive (PAYD) is estimated to be the largest segment during the forecast period. The main advantages of PAYD are the ease of deployment, the absence of complex algorithms for the job and the profitability for the insurer as well as the consumers.
Second, PAYD insurance encourages consumers to drive less and drive green. This reduces vehicle emissions and contributes to global efforts to improve the environment.
As people drive less, the accident risks associated with drivers decrease. Additionally, PHYD and MHYD collect multiple driver behavior data points, which the driver may not be comfortable sharing.
This makes PAYD the preferred choice. Additionally, PHYD and MHYD register reckless driving or speeding which attracts higher premiums. Therefore, many users stick to PAYD insurance plans.
Vintage vehicle segment expected to grow at highest CAGR
Old vehicles are estimated to be the fastest growing market during the forecast period. Initially, uptake of usage-based insurance is likely to be lower in road vehicles.
As UBI penetration is expected to increase in new vehicles, the UBI market for road vehicles will also grow at a rapid rate. The main countries expected to have high UBI penetration are USA, Italy, Germany, UK China.
The penetration of UBI in the vehicle fleet is expected to increase with a double growth rate in these countries.
Asia-Pacific market is expected to register the highest growth during the forecast period
The Asia-Pacific 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.
Several companies are planning to integrate telematics and IoT navigation into new vehicles to reduce carbon emissions and provide real-time emission data. For example, Maruti Suzuki launched Suzuki Connect, âan advanced telematics solution for its customers in India.
Likewise, the Ministry of Industry and Information Technology and the China Standards Administration jointly issued the Guidelines for the Development of Telematics Industry Standards System (Intelligent and Connected Vehicles). Such initiatives would boost the growth of vehicle telematics, which in turn would drive the growth of the usage-based insurance market during the forecast period.
In addition, the deployment of UBI programs in developing Asia-Pacific countries is expected to boost its market. For example, in 2020, Bharti AXA General Insurance launched its PAYD UBI auto insurance policies for passenger car owners as part of the IRDAI Sandbox project.
For this, it has partnered with PolicyBazaar.com.
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.
â¢ By type of company: UBI suppliers – 40%, UBI technology suppliers – 50%, others-10%
â¢ By designation: level C – 19%, level D – 71% and others – 10%
â¢ 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 SpA (Italy), Progressive Casualty Insurance Company (US), Allstate Insurance Company (US), State Farm Automobile Mutual Insurance Company (United States) and Liberty Mutual Insurance Company (United States), AXA (France), Assicurazioni Generali (Italy), Allianz (Germany), Webfleet Solutions (Netherlands), Verizon (United States). The study includes an in-depth competitive analysis of these key players in the insurance market based on usage with their company profiles, MnM view of the top five companies, recent developments and key market strategies.
The usage insurance market is segmented according to the type of plan [Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD)], technology (OBD-II, smartphone, on-board system, black box and other technologies), vehicle type (light and heavy vehicle), vehicle age (new and old vehicles), type of device offer (bring your own own device (BYOD) and provided by the company), the type of electric vehicle (BEV, PHEV and FCEV) and the region (Asia-Pacific, Europe, North America and RoW). The study also includes an in-depth competitive analysis of key market players along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Main advantages of purchasing the report:
The report will assist the market leaders / new entrants in this market with the information on the closest approximations to revenue figures for the overall usage-based insurance market and sub-segments. This report will help stakeholders understand the competitive landscape and gain insight to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the market pulse and provides them with insights into the major market drivers, restraints, challenges, and opportunities.
Read the full report: https://www.reportlinker.com/p05532148/?utm_source=GNW
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