during the forecast period. All major players such as UnipolSai Assicurazioni S. p. A, Progressive Casualty Insurance Company, Allstate Insurance Company, State Farm Automobile Mutual Insurance Company, Liberty Mutual Insurance Company, and other UBI technologies providers are developing solutions and technologies that can accurately analyze vehicle data and driver behavior.
New York, June 18, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Usage-Based Insurance Market for ICE & Electric Vehicle by Package, Technology, Vehicle Age, Device Offering and Region - Global Forecast to 2026" - https://www.reportlinker.com/p05532148/?utm_source=GNW
The companies aim to improve their UBI offerings by accurate determination of premiums.
The increasing adoption of telematics and advancements in safety technology have helped reduce claims.The European Union has mandated e-assistance systems in case of an accident.
The eCall system, mandatory for all new EU vehicles since March 2018, speeds up emergency-response times by 40–50%.Also, Russia mandated a similar system for new cars at the end of 2017, while Mexico has mandated radio-frequency-identification (RFID) tags to bolster vehicle-antitheft systems.
Many other countries, including China, Germany, Singapore, and South Africa, have voluntary systems that provide UBI incentives. However, the ambiguity over regulations and legislation and the lack of standardized systems can hinder market growth.
According to OICA, the sales of passenger car sales dropped from 63.7 million in 2019 to 53.6 million in 2020, witnessing a decline of 15.9% due to the pandemic. However, the decline in sales statistics did not impact the usage-based insurance market at all. For instance, according to Insurance Information Institute (III) and other secondary sources (insurancenewnet.com, blogs, articles, etc.), UBI got a boost during the COVID-19 pandemic. People were comfortable with having their insurance premiums based on the number of miles driven. Thus, in the coming years, the UBI market is likely to get a significant boost.
PAYD segment is expected to be the largest market by package type
Pay-As-You-Drive (PAYD) is estimated to be the largest segment during the forecast period.The key advantages of PAYD are ease of deployment, no complex algorithms for working, and cost-effectiveness for the insurer as well as consumers.
Secondly, PAYD insurance encourages consumers to drive less and drive green.This reduces vehicle emissions and contributes to the worldwide efforts for environmental betterment.
As people drive less, the accidental risks associated with drivers reduce.Additionally, PHYD and MHYD gather multiple data points about driver behavior, which the driver may not be comfortable sharing.
This makes PAYD the preferred choice. In addition, PHYD and MHYD record rash driving or speeding that attract higher premiums. Hence, many users stick to PAYD insurance plans.
Old Vehicle segment is expected to grow at the highest CAGR
Old vehicle is estimated to be the fastest-growing market during the forecast period.Initially, the adoption of usage-based insurance is likely to be less in on-road vehicles.
As the penetration of UBI is expected to increase in new vehicles, the UBI market for on-road vehicles will also increase at a rapid pace.The major countries that are expected high penetration of UBI are the US, Italy, Germany, UK, and China.
The UBI penetration in vehicle parc is expected to increase with a double growth rate in these countries.
The 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 plan to integrate telematics and IoT-enabled navigation in new vehicles to reduce carbon emissions and offer real-time emission data.For instance, Maruti Suzuki launched Suzuki Connect, ‘an advanced telematics solution for its customers in India.
Similarly, the Ministry of Industry and Information Technology and the Standardization Administration of China together issued the Guidelines for Developing the Standards System of the Telematics Industry (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.
Also, the rolling out of UBI programs in developing countries in Asia Pacific is expected to drive its market.For instance, in 2020, Bharti AXA General Insurance launched its PAYD UBI motor insurance policies for private car owners under IRDAI’s Sandbox project.
For this, it has tied up 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.
• By Company Type: UBI Providers- 40%, UBI Technology Providers - 50%, Others-10%
• By Designation: C Level - 19%, D Level – 71%, and Others - 10%
• 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 S.p.A (Italy), Progressive Casualty Insurance Company (US), Allstate Insurance Company (US), State Farm Automobile Mutual Insurance Company (US), and Liberty Mutual Insurance Company (US), AXA(France), Assicurazioni Generali (Italy), Allianz(Germany), Webfleet Solutions (The Netherlands), Verizon (US). The study includes an in-depth competitive analysis of these key players in the usage-based insurance market with their company profiles, MnM view of the top five companies, recent developments, and key market strategies.
The usage-based insurance market is segmented on the basis of package type [Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD)], technology (OBD-II, smartphone, embedded system, black box, and other technologies), vehicle type (light-duty vehicle and heavy-duty vehicle), vehicle age (new vehicles and old vehicles), device offering type (bring your own device (BYOD) and company provided), electric vehicle type (BEV, PHEV, and FCEV), and Region (Asia Pacific, Europe, North America, and RoW). The study also includes an in-depth competitive analysis of the key players in the market along with their company profiles, key observations related to product and business offerings, recent developments, and key market strategies.
Key Benefits of Buying the Report:
The report will help the market leaders/new entrants in this market with the information on the closest approximations of the revenue numbers for the overall usage-based insurance market and the sub-segments.This report will help stakeholders understand the competitive landscape and gain insights to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
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