Usage Insurance Market Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2020 to 2030

Published on : Nov-2020 | List of Tables : 57 | List of Figures : 92 | No. of Pages : 170 | Report Code : FACT5352MR |

Until recently a large section of car owners were content with conventional car insurance policies or a comprehensive insurance that covered vehicle damage but with a significant number of exclusions. Customers are yet to know about various novel covers, as a result most policyholders still tend to opt for traditional means of insuring their vehicles.

However, they are soon realizing flaws in ‘one-size-fits-all’ approach offered by insurance providers. Comprehensive insurance often do not take into account realities of the market. This is however expected to change with the advent of usage based insurance (UBI), also referred to as pay-as-you-drive or pay-per mile insurance.

UBI is a special type of auto insurance that determines how far a vehicle is driven based on a specific insurer’s program. It is usually powered by the telematics technology that is either pre-installed in a vehicle or is available using a plug-in-devices. It is also available via mobile applications were car insurers can access data about how drivers are braking or accelerating the speed of vehicle, how long they have been behind their wheels, and others.

usage based insurance market regional analysis

UBI Becoming Highly Sought-after Among Trucking Companies

Prospects for growth seem highly lucrative for the UBI market. User based insurance provides customers with cutting-edge technology to monitor driving behavior in real-time. Insurance providers too, find impressive advantages as UBI offers them an accurate picture of their client’s driving behavior.

Major insurers have been involving to offer telematics and usage based insurance solutions. Some of the behemoths in the industry have been trailing this type of systems. Within a few years it has become apparent that commercial telematics systems and UBI can help vehicle owners, especially trucking companies keep tract of driving habits of their drivers ensuring better vehicle and road safety.

Possibilities of Reducing Cost Incurred on Insurance

The UBI insurance policy leverages the machine-to-machine technology to obtain data from in-car devices, enabling the insurance providers to determine and customize premiums based on the driving behavior of an individual. This ultimately helps in having control over claim cost. Coupled with this, the recent improvements in pricing models are expected to give tailwinds to the growth witnessed in the market.

Recent studies suggest that UBI programs offer greater customer satisfaction to good drivers. This program rewards best drivers, helping insurance companies to forge lasting and intimate relationship with their clients. Those who fail to see reduction in their insurance premium, are presented with sincere reasons causing their situation.

Complexity of the Process Hindering Uptake

Applying for and the overall process of usage based insurance can be very complex. For a successful UBI, various industries included IT and telecom, hardware, and insurance are required to perform in tandem with one another. Since the market faces several hurdles including legal and need for sophisticated IT infrastructure, its penetration is limited in certain country. Moreover, a significant share of the clients may not be in favor of sharing their vehicle data with insurance companies, which could hinder the overall growth of the market.

COVID-19 Impact on Usage Based Insurance Market

While the insurance sector is generally prepared for unforeseen events, including unprecedented outbreak of pandemic, but the financial implications of COVID-19 on the usage based insurance market might take some time for assessment. While most companies have business continuity plans, they might not be fully aware about unknown variables of outbreak of a scale such as the COVID-19.

The pandemic situation has already had a negative impact on both internal and external communication, making it difficult for insurance companies to offer prompt response. As such smaller insurance providers may face litigation risk or threat of losing reputation. Additional pressure on growth and capital levels, coupled with depression of asset value can result in deterioration of the overall credit quality. This could hamper insurance businesses around the world

Usage Based Insurance Market Insights by Policy

Among policies available in the market, Fact MR forecasts the demand for pay-as-you-drive (PAYD) is forecast to be higher than the rest. In the PAYD model the value of premium is determined based on the miles driven by a car. Odometers are generally installed in the cars and then connected to a wireless device to calculate this. Over the course of the forecast period, the demand witnessed in the pay-how-you drive (PHYD) segment too is expected to surge at an impressive pace.

Usage Based Insurance Market Insights by Product

In terms of product, the global market can be categorized into black box, OBD dongle, smartphones, and others. Of these, the market is expected to be dominated by the black box segment. OBD segment too will witness surge in popularity. The demand for greater accuracy in data collected and long-term connectivity of devices will aid growth in the black box segment.

Usage Based Insurance Market Insights by Vehicle

In terms of vehicle, the market can be bifurcated into commercial vehicle and passenger vehicle. Growth witnessed in the passenger vehicle segment is expected to be considerably higher. Higher focus of car owners on rewarding insurance policies, while saving cost will drive growth within the segment.

Regional Outlook on Usage Based Insurance Market

North America currently holds dominance in the global market for usage based insurance. The rising confidence of consumers in the insurance models will aid the expansion witnessed in the region. Also consumers in the region are well information, which has helped in catapulting the market among other models of insurance available in North America.

Europe too has emerged as a lucrative market and is forecast to continue offering attractive growth opportunities. Greater focus towards road and driver safety will aid expansion in the region. Besides this, Europe has become an attractive, exhibiting higher uptake of connected vehicles. This is expected to bode well for the market in the region.

Usage Based Insurance Market Competitive Landscape

The global usage based insurance market comprises of the following players:

  • Insure the Box
  • AllState Insurance Company
  • State Farm
  • Uniqa
  • Groupama
  • Generalli
  • Uniposai
  • Liberty Mutual
  • Allianz SE

Companies operating in the market are currently focusing on strategic collaborations besides strengthening their research and development (R&D) capabilities to gain competitive edge. They are constantly focusing on finding ways of improving their customer services to give tailwinds to their brand names. Acquisitions too are not uncommon in the market.

For instance, in October 2017, assets of Wills Towers Watson were acquired by Octo Telematics to strengthen the telematics portfolio of the latter. Likewise, collaboration between Electronic Logging Device (ELD) vendors and Progressive Casualty Insurance Company in September 2018 was intended at collecting vehicle data as per the Federal Motor Carrier Safety Administration’s final ELD mandate.

Analyst’s Viewpoint

“With several collaborations and acquisitions underway, research initiatives in the UBI market are expected to gain impetus. While uptake of the insurance model is more prevalent in the west, thanks to expansion efforts undertaken by leading companies, the market soon will establish a stronghold in countries exhibiting a high prevalence of unmet vehicle insurance needs.”

Usage Based Insurance Market – Scope of the Report

Fact.MR has published an exclusive forecast report on the usage based insurance market from 2020 to 2030. The foremost objective of this report is to pitch insights on the market scenario, demand generators, and technological advancements in the usage based insurance market. Also, the study addresses key dynamics expected to diversify the sales and future trajectory of the market.

The report begins with an executive overview, in which, product definition has been provided. The report further proceeds with the taxonomy of the usage based insurance market, elaborating on key segments. Also, the report outlines visionary insights on the dynamics of the usage based insurance market, including the drivers, restraints, opportunities, trends, and pricing analysis, along with the key buying factors for usage based insurance.

A recent study by Fact.MR on the usage based insurance market offers a 10-year forecast from 2020 to 2030. The study analyzes crucial trends that are currently determining market growth. This report explicates on vital dynamics, such as the drivers, restraints, and opportunities for key market players along with key stakeholders and emerging players associated with the offering usage based insurance policies. The study also provides the dynamics that are responsible for influencing future status of the usage based insurance market over the forecast period.

A detailed assessment of the usage based insurance value chain analysis, business execution, and supply chain analysis across regional markets has been covered in the report. A list of prominent companies operating in the usage based insurance market, along with their product portfolios, enhances the reliability of this comprehensive research study.

Usage based insurance Market: Report Summary

The study offers a comprehensive analysis on diverse factors, including demand, product developments, revenue generation, and sales in the usage based insurance market across the globe.

A comprehensive estimate on the usage based insurance market has been provided through an optimistic as well as a conservative scenario, taking into account the sales during the forecast period. Price point comparison by region with global average price is also considered in the study.

Usage Based Insurance Market – Segmentation

Fact.MR’s research study assesses the global usage based insurance market in terms of raw material, form, application and region. This report presents extensive market dynamics and trends associated with different segments of the market and their influence on the growth prospects of the global usage based insurance market.

Policy Type

  • Pay-how-you-drive  (PHYD)
  • Pay-as-you-drive (PAYD)
  • Manage-how-you-drive (MHYD)
Product
  • Black Box
  • OBD Dongle
  • Smartphone
  • Others

Vehicle

  • Passenger Vehicle
  • Commercial Vehicle

Region

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa

Key Questions Answered in Fact.MR’s Usage Based Insurance Market Report

  • Which regions will continue to remain the most profitable regional markets for usage based insurance market players?
  • Which factors will induce a change in the demand for usage based insurance during the assessment period?
  • How will changing trends impact the usage based insurance market?
  • How can market players capture the low-hanging opportunities in the usage based insurance market in developed regions?
  • Which companies are leading the usage based insurance market?
  • What are the winning strategies of stakeholders in the usage based insurance market to upscale their position in this landscape?

Usage Based Insurance Market: Inspected Assessment on Regional Segments

Key sections have been elaborated in the usage based insurance market report, which have helped deliver projections on regional markets. These chapters include regional macros (political, economic and business environment outlook), which are expected to have a momentous influence on the growth of the usage based insurance market during the forecast period.

Country-specific valuation on demand for usage based insurance market has been offered for each regional market, along with market scope estimates and forecasts, price index, and impact analysis of the dynamics of prominence in regions and countries. For all regional markets, Y-o-Y growth estimates have also been incorporated in the report.

Detailed breakup in terms of value for emerging countries has also been included in the report.

Usage Based Insurance Market: Research Methodology

In Fact.MR’s study, a unique research methodology is utilized to conduct extensive research on the growth of the usage based insurance market, and reach conclusions on the future growth parameters of the market. This research methodology is a combination of primary and secondary research, which helps analysts ensure the accuracy and reliability of the drawn conclusions.

Secondary resources referred to by analysts during the preparation of the usage based insurance market study include statistics from governmental organizations, trade journals, white papers, and internal and external proprietary databases. Analysts have interviewed senior managers, product portfolio managers, CEOs, VPs, marketing/product managers, and market intelligence managers, all of whom have contributed to the development of the usage based insurance market report as a primary resource.

1. Executive Summary

    1.1. Global Market Outlook

    1.2. Summary of Statistics

    1.3. Summary of Key Findings

    1.4. Analysis and Recommendations

2. Market Overview

    2.1. Market Coverage / Taxonomy

    2.2. Market Definition / Scope / Limitations

3. Market Risks and Trends Assessment

    3.1. Risk Assessment

        3.1.1. COVID-19 Crisis and Impact on Usage Based Insurance Sales

        3.1.2. COVID-19 Crisis and Impact on Usage Based Insurance Prices

        3.1.3. COVID-19 Impact Benchmark with Previous Crisis

            3.1.3.1. Change in Usage Based Insurance Sales

            3.1.3.2. Before and After COVID-19 Crisis (Projected)

            3.1.3.3. Before and After Sub-prime Crisis – 2008 (Actual)

            3.1.3.4. Change in Sales post Recovery Period (After Each Crisis)

        3.1.4. Impact on Market Value (US$ Mn)

            3.1.4.1. Likely Loss of Value in 2020

            3.1.4.2. Mid-term and Long Term Forecast

            3.1.4.3. Quarter by Quarter Sales and Recovery Assessment

        3.1.5. Anticipated Sales and Value Recovery Curve

            3.1.5.1. Likelihood of U-Shape Recovery

            3.1.5.2. Likelihood of L-Shape Recovery

        3.1.6. Recovery Period Assessment by Key Countries

        3.1.7. Recovery Assessment by Key Market Segments

        3.1.8. Action Points and Recommendation for Suppliers

    3.2. Key Trends Impacting the Market

    3.3. Formulation and Policy Type Development Trends

4. Market Background and Foundation Data Points

    4.1. Automotive Market Outlook

    4.2. Regulatory Landscape

    4.3. Automotive Decision of Manufacturers

    4.4. Scenario based Growth Forecast

    4.5. Value Chain Analysis

        4.5.1. List of Key Manufacturers

        4.5.2. List of Channel Partners

        4.5.3. Operating Margins

        4.5.4. Notes on Value Added at Each Node in the Value Chain

    4.6. Macro-Economic Factors

        4.6.1. Global GDP Growth Outlook

        4.6.2. Global Automotive Industry Outlook

        4.6.3. Global Employment Outlook

        4.6.4. Per Capita Disposable Income

    4.7. Forecast Factors - Relevance & Impact

        4.7.1. Top Companies Historical Growth

        4.7.2. Global GDP Growth Analysis

        4.7.3. Industrial Growth Impact

    4.8. Market Dynamics

        4.8.1. Market Driving Factors and Impact Assessment

        4.8.2. Prominent Market Challenges and Impact Assessment

        4.8.3. Usage Based Insurance Market Opportunities

        4.8.4. Prominent Trends in the Global Market & Their Impact Assessment

5. Global Usage Based Insurance Market Value Analysis 2015-2019 and Forecast, 2020-2030

    5.1. Historical Market Value (US$ Mn) Analysis, 2015-2019

    5.2. Current and Future Market Value (US$ Mn) Projections, 2020-2030

        5.2.1. Y-o-Y Growth Trend Analysis

        5.2.2. Absolute $ Opportunity Analysis

6. Global Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030, By Policy Type

    6.1. Introduction / Key Findings

    6.2. Historical Market Size (US$ Mn) By Policy Type, 2015-2019

    6.3. Current and Future Market Size (US$ Mn) Analysis and Forecast By Policy Type, 2020 - 2030

        6.3.1. Pay-how-you-drive (PHYD)

        6.3.2. Pay-as-you-drive (PAYD)

        6.3.3. Manage-how-your-drive (MHYD)

    6.4. Market Attractiveness Analysis By Policy Type

7. Global Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030, By Product

    7.1. Introduction / Key Findings

    7.2. Historical Market Size (US$ Mn) Analysis By Product, 2015-2019

    7.3. Current and Future Market Size (US$ Mn) Analysis and Forecast By Product, 2020 - 2030

        7.3.1. Black Box

        7.3.2. OBD Dongle

        7.3.3.  Smartphone

        7.3.4. Others

    7.4. Market Attractiveness Analysis By Product

8. Global Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030, By Vehicle

    8.1. Introduction / Key Findings

    8.2. Historical Market Size (US$ Mn) Analysis By Vehicle, 2015-2019

    8.3. Current and Future Market Size (US$ Mn) Analysis and Forecast By Vehicle, 2020 - 2030

        8.3.1. Passenger Vehicle

        8.3.2.  Commercial Vehicle

    8.4. Market Attractiveness Analysis By Vehicle

9. Global Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030, by Region

    9.1. Introduction

    9.2. Historical Market Size (US$ Mn) Analysis By Region, 2015-2019

    9.3. Current Market Size (US$ Mn) Analysis and Forecast By Region, 2020 - 2030

        9.3.1. North America

        9.3.2. Latin America

        9.3.3. Europe

        9.3.4. Asia Pacific

        9.3.5. Middle East and Africa (MEA)

    9.4. Market Attractiveness Analysis By Region

10. North America Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030

    10.1. Introduction

    10.2. Pricing Analysis

    10.3. Historical Market Size (US$ Mn) Trend Analysis By Market Taxonomy, 2015-2019

    10.4. Market Size (US$ Mn) Forecast By Market Taxonomy, 2020 - 2030

        10.4.1.  By Country

            10.4.1.1. U.S.

            10.4.1.2. Canada

        10.4.2. By Policy Type

        10.4.3. By Product

        10.4.4. By Vehicle

    10.5. Market Attractiveness Analysis

        10.5.1. By Country

        10.5.2. By Policy Type

        10.5.3. By Product

        10.5.4. By Vehicle

11. Latin America Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030

    11.1. Introduction

    11.2. Pricing Analysis

    11.3. Historical Market Size (US$ Mn) Trend Analysis By Market Taxonomy, 2015-2019

    11.4. Market Size (US$ Mn) Forecast By Market Taxonomy, 2020 - 2030

        11.4.1.  By Country

            11.4.1.1. Brazil

            11.4.1.2. Mexico

            11.4.1.3. Argentina

            11.4.1.4. Chile

            11.4.1.5. Peru

            11.4.1.6. Rest of Latin America

        11.4.2. By Country

        11.4.3. By Policy Type

        11.4.4. By Product

        11.4.5. By Vehicle

    11.5. Market Attractiveness Analysis

        11.5.1. By Country

        11.5.2. By Policy Type

        11.5.3. By Product

        11.5.4. By Vehicle

12. Europe Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030

    12.1. Introduction

    12.2. Pricing Analysis

    12.3. Historical Market Size (US$ Mn) Trend Analysis By Market Taxonomy, 2015-2019

    12.4. Market Size (US$ Mn) Forecast By Market Taxonomy, 2020 - 2030

        12.4.1.  By Country

            12.4.1.1. Germany

            12.4.1.2. France

            12.4.1.3. Italy

            12.4.1.4. Spain

            12.4.1.5. U.K.

            12.4.1.6. BENELUX

            12.4.1.7. Rest of Europe

        12.4.2. By Country

        12.4.3. By Policy Type

        12.4.4. By Product

        12.4.5. By Vehicle

    12.5. Market Attractiveness Analysis

        12.5.1. By Country

        12.5.2. By Policy Type

        12.5.3. By Product

        12.5.4. By Vehicle

13. East Asia Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030

    13.1. Introduction

    13.2. Pricing Analysis

    13.3. Historical Market Size (US$ Mn) Trend Analysis By Market Taxonomy, 2015-2019

    13.4. Market Size (US$ Mn) Forecast By Market Taxonomy, 2020 - 2030

        13.4.1. By Country

            13.4.1.1. China

            13.4.1.2. Japan

            13.4.1.3. South Korea

        13.4.2. By Country

        13.4.3. By Policy Type

        13.4.4. By Product

        13.4.5. By Vehicle

    13.5. Market Attractiveness Analysis

        13.5.1. By Country

        13.5.2. By Policy Type

        13.5.3. By Product

        13.5.4. By Vehicle

14. South Asia Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030

    14.1. Introduction

    14.2. Pricing Analysis

    14.3. Historical Market Size (US$ Mn) Trend Analysis By Market Taxonomy, 2015-2019

    14.4. Market Size (US$ Mn) Forecast By Market Taxonomy, 2020 - 2030

        14.4.1.  By Country

            14.4.1.1. India

            14.4.1.2. Thailand

            14.4.1.3. Indonesia

            14.4.1.4. Malaysia

            14.4.1.5. Rest of South Asia

        14.4.2. By Country

        14.4.3. By Policy Type

        14.4.4. By Product

        14.4.5. By Vehicle

    14.5. Market Attractiveness Analysis

        14.5.1. By Country

        14.5.2. By Policy Type

        14.5.3. By Product

        14.5.4. By Vehicle

15. Oceania Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030

    15.1. Introduction

    15.2. Pricing Analysis

    15.3. Historical Market Size (US$ Mn) Trend Analysis By Market Taxonomy, 2015-2019

    15.4. Market Size (US$ Mn) Forecast By Market Taxonomy, 2020 - 2030

        15.4.1.  By Country

            15.4.1.1. Australia

            15.4.1.2. New Zealand

        15.4.2. By Country

        15.4.3. By Policy Type

        15.4.4. By Product

        15.4.5. By Vehicle

    15.5. Market Attractiveness Analysis

        15.5.1. By Country

        15.5.2. By Policy Type

        15.5.3. By Product

        15.5.4. By Vehicle

16. Middle East and Africa Usage Based Insurance Market Analysis 2015-2019 and Forecast 2020-2030

    16.1. Introduction

    16.2. Pricing Analysis

    16.3. Historical Market Size (US$ Mn) Trend Analysis By Market Taxonomy, 2015-2019

    16.4. Market Size (US$ Mn) Forecast By Market Taxonomy, 2020 - 2030

        16.4.1.  By Country

            16.4.1.1. GCC Countries

            16.4.1.2. South Africa

            16.4.1.3. Turkey

            16.4.1.4. Iran

            16.4.1.5. Israel

            16.4.1.6. Rest of Middle East and Africa

        16.4.2. By Country

        16.4.3. By Policy Type

        16.4.4. By Product

        16.4.5. By Vehicle

    16.5. Market Attractiveness Analysis

        16.5.1. By Country

        16.5.2. By Policy Type

        16.5.3. By Product

        16.5.4. By Vehicle

17. Market Structure Analysis

    17.1. Market Analysis by Tier of Companies

    17.2. Market Concentration

    17.3. Market Share Analysis of Top Players

    17.4. Market Presence Analysis

        17.4.1. By Regional footprint of Players

        17.4.2. Policy Type footprint by Players

        17.4.3. Channel footprint by Players

18. Competition Analysis

    18.1. Competition Dashboard

    18.2. Competition Benchmarking

    18.3. Competition Deep Dive (Indicative List)

        18.3.1. Insure the Box

            18.3.1.1. Overview

            18.3.1.2. Policy Type Portfolio

            18.3.1.3. Sales Footprint

            18.3.1.4. Strategy Overview

        18.3.2. AllState Insurance Company

            18.3.2.1. Overview

            18.3.2.2. Policy Type Portfolio

            18.3.2.3. Sales Footprint

            18.3.2.4. Strategy Overview

        18.3.3. State Farm

            18.3.3.1. Overview

            18.3.3.2. Policy Type Portfolio

            18.3.3.3. Sales Footprint

            18.3.3.4. Strategy Overview

        18.3.4. Uniqa

            18.3.4.1. Overview

            18.3.4.2. Policy Type Portfolio

            18.3.4.3. Sales Footprint

            18.3.4.4. Strategy Overview

        18.3.5. Groupama

            18.3.5.1. Overview

            18.3.5.2. Policy Type Portfolio

            18.3.5.3. Sales Footprint

            18.3.5.4. Strategy Overview

        18.3.6. Generalli

            18.3.6.1. Overview

            18.3.6.2. Policy Type Portfolio

            18.3.6.3. Sales Footprint

            18.3.6.4. Strategy Overview

        18.3.7. Uniposai

            18.3.7.1. Overview

            18.3.7.2. Policy Type Portfolio

            18.3.7.3. Sales Footprint

            18.3.7.4. Strategy Overview

        18.3.8. Liberty Mutual

            18.3.8.1. Overview

            18.3.8.2. Policy Type Portfolio

            18.3.8.3. Sales Footprint

            18.3.8.4. Strategy Overview

        18.3.9. Allian SE

            18.3.9.1. Overview

            18.3.9.2. Policy Type Portfolio

            18.3.9.3. Sales Footprint

            18.3.9.4. Strategy Overview

19. Appendix

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Usage Insurance Market Forecast, Trend, Analysis & Competition Tracking - Global Market Insights 2020 to 2030