Usage Based Insurance Market Surging in Response to Advancements in Automobile Technologies: Fact.MR
Published : 18 Nov 2020 Industry: Automotive
Usage based insurance models are getting increasingly popular especially since the model provides its clients with a scope to incur lesser expenses on their insurance policies. The model utilizes vehicle communication systems to monitor driving behavior and mileage, based on which insurance premiums are calculated. Against this backdrop, Fact.MR sees the rising sales of connected vehicles to be a chief driver of the usage based insurance market.
In a recent study, Fact.MR has forecast to market to surge exponentially between 2020 and 2030. The adoption of the telematics technology for accurate feedback on driving behavior will emerge as a chief growth driver. Coupled with this, demand for more customizable vehicle insurance services will bode well for the overall market.
Fact.MR offers an all-inclusive study on the market, highlighting the chief growth driver and key restraints. It also uncovers the hidden prospects for market players. Some of the key takeaways from the report are:
- Adoption of novel technologies are expected to unfold attractive business prospects for the usage brand insurance market. Taking cue from customer preference, insurers are expected to launch various value added services and offer premium discounts to customers, which will bode well for the overall market
- Regionally, North America will continue to lead the global market, trailed by Europe. The large number of vehicles plying on road of North America and willingness of vehicle owners to spend on more rewarding insurance models will aid growth in the region
- Among products available, black box will continue leading the market. The device offers greater accuracy and long term connectivity, which is aiding the expansion of the segment
- On the basis of policy type, the pay-as-you-drive model will emerge dominant. However, over the forecast period the growth witnessed in the pay-how-you-drive model too is likely to be impressive
Advancements in Automotive Sector Supporting Growth
The evolution of insurance available for automotive usage corresponds directly to the advancements witnessed in the automotive sector. It is also directly proportional to sale of connected vehicles. The rising focus on remotely monitoring driving behavior by car insurance providers is expected to bode well for the market.
The demand for usage based insurance is expected to surge in the coming years in response to the rising use of advanced onboard communication devices in vehicles. This will also help in improving real-time connectivity between vehicle and the insurance providers, enabling the latter to accurately diagnose breakdown issues.
With insurance providers launching various lucrative models to gain competitive advantage, the market for usage based insurance is likely to gain significant traction in the coming years.
Who is winning?
Companies operating in the market are focusing on strategic collaborations to gain competitive advantage. Besides this, they are also likely to customize their models as per customer requirement to stay relevant. Fact.MR’s report on the market profiles some of the leading companies operating in the usage based insurance market and studies key strategies they have adopted over the years.
Some of the companies profiled in the report are Uniposai, State Farm, Insure the Box, AllState Insurance Company, Generalli, Uniqa, Groupama, and Liberty Mutual.
More Valuable Insights on Usage Based Insurance Market
In its latest report, Fact.MR has provided an unbiased analysis on the global usage based insurance market, comprising data on historical statistics (2015-2019) and forecast of demand for the period between 2020 and 2030. The report discusses critical insights on the usage based insurance market in terms of policy type (pay-how-you drive, pay-as-you-drive, and manage-how-you-drive), product (black box, OBD dongle, smartphone, and others), and vehicle (passenger vehicle and commercial vehicle) across five key regions (North America, Latin America, Europe, Asia Pacific & Middle East & Africa).
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About the Automotive Division at Fact.MR
Expert analysis, actionable insights and strategic recommendations of the highly seasoned automotive team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over a thousand reports and 1 million plus data points, the team has analyzed the automotive industry across 50+ countries for over a decade. Reach to explore how we can help.