Usage-Based Insurance Market Global Scenario, Market Size, Outlook, Trend, and Forecast, 2016 – 2025
Global Usage-Based Insurance Market size is projected to be valued $253 Billion by 2024; with a CAGR of 38% from 2017 to 2025. Usage-based insurance (UBI) is also called telematics-based insurance and can either be Pay as You Drive, Pay How You Drive, or Manage How You Drive insurance, depending upon the comfort and preference of consumers. Accurate and timely data collection and lower fuel consumption are the major benefits of telematics based insurance. Market players have used various strategies such as partnership and expansion to gain competition in the market. The partnerships are majorly being done with the telematics services providers to enhance technical support and services to consumers.
The factors that drive the growth of global usage-based insurance market are lower accident and vehicle theft possibilities, enhanced customer loyalty, and reduced claims costs. Also, detection of stolen vehicles through telematics device installed in the vehicle and personalized revenue generating value added services within insurance plans to serve consumer interests more effectively also supplements the market growth. However, high telemetric installation cost and privacy concerns may restrain the market in the coming years. Moreover, technological advancement to make the process easier with reduced service rate is expected to pose new growth opportunities for the market in the future years.
The global usage-based insurance market is segmented on the basis of type, technology, and geography. By type, the market is segmented into pay-as-you-drive (PAYD), pay-how-you-drive (PHYD), and manage-how-you-drive (MHYD). By technology, the market is bifurcated as OBD-II, smartphone, hybrid, and black box.
Based on geography, usage-based insurance is segmented into North America, Europe, Asia-Pacific, and Rest of the World (RoW). North America is further bifurcated in U.S. and Rest of North America whereas Europe consists of UK, Germany, France, Italy, and Rest of Europe. Asia-Pacific is segmented into Australia, Japan, and Rest of Asia-Pacific while RoW is bifurcated into South America, Middle East, and Africa.
The key companies operating in the market include Mapfre S.A., Progressive Corporation, Desjardins Insurance, Aviva plc., Metromile, Allianz SE, Insure The Box Ltd., Allstate Corporation, AXA S.A., and Generali Group, among others.
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Scope of the Global Usage-Based Insurance Market