Automotive Usage Based Insurance Market Size Expected to Rise USD 119.68 billion at CAGR 21.2% by 2028

Automotive Usage Based Insurance Market to Reach USD 119.68 Billion by 2028; Increasing Collaborations between OEMs and Insurance and Telematics Companies to Augment Market Growth: Fortune Business Insights™

Pune, india, March 06, 2023 (GLOBE NEWSWIRE) — The global automotive usage based insurance market size was USD 28.27 billion in 2020. The market is expected to grow from USD 31.21 billion in 2021 to USD 119.68 billion by 2028 at a CAGR of 21.2% in the 2021-2028 period. This information is provided by Fortune Business Insights, in its report titled, “Automotive Usage Based Insurance Market, 2021-2028.”

Usage-based insurance (UBI), is a type of auto insurance that measures how far the vehicle is driven, when and where it is driven. This is powered by telematics technology that is available in vehicles and it can also be installed through mobile applications.

Industry Development

Progressive Corporation launched Snapshot ProView. It is a voluntary UBI and fleet management program, which will be useful for small business owners. They can save nearly 8%, and some can even save up to 18%, for their initial term based on vehicle type and nature of business use.

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Automotive Usage Based Insurance Market Scope:

Report Coverage Details
Forecast Period 2021-2028
Forecast Period 2021 to 2028 CAGR 21.2%
2028 Value Projection USD 119.6 Billion
Base Year 2020
Market Size in 2020 USD 28.27 Billion
Historical Data for 2017-2019
No. of Pages 165
Segments covered Automotive Usage Based Insurance Market Size, Share & COVID-19 Impact Analysis, By Type (Pay-How-You-Drive (PHYD), Pay-As-You-Drive (PAYD), Manage-How-You-Drive (MHYD)), By Technology Type (Smartphone, Embedded System, Black Box, Other Technologies).
Growth Drivers Increasing Consumer Acceptance of UBI to Augment Growth.
Automotive usage based insurance can also help assess risk more accurately, price it into policies and optimize and minimize exposure.

Market Drivers & Restraints:

The increasing benefits of   UBI is expected to drive the automotive usage-based insurance market growth. For instance, as per Willis Towers Watson conducted a survey of U.S. consumers, around 81% of usage-based insurance policyholders stated that it is good to have UBI.  Additionally, most consumers stated that automotive UBI is hassle free in calculation of insurance premiums and risk factors. Furthermore, according to the survey, it is more transparent as drivers are also open to share their recent driving data for personalized insurance quotes. This is increasing consumer acceptance of UBI.

COVID-19 Impact

The COVID 19 pandemic promoted the market as during these times, various shortcomings were highlighted which increased the adoption of UBI. For instance, according to a survey by Bain & Company, around   21% of respondents have already purchased UBI, and 56% said they would likely purchase it in the future.

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Report Coverage

The market for automotive usage-based insurance report provides a detailed analysis of several factors such as the key drivers and restraints that will impact growth. Additionally, the report provides insights into the regional analysis that covers different regions, contributing to the growth of the market. It includes the competitive landscape that involves the leading companies and the adoption of strategies to introduce new products, announce partnerships, and collaboration to contribute to the market growth.

Segmentation of Report:

By the type the market is segmented into Pay-How-You-Drive (PHYD), Pay-As-You-Drive (PAYD), and Manage-How-You-Drive (MHYD)). Based on technology it is segmented into smartphone, embedded system, black box, and other technologies. By the vehicle type it is bifurcated into passenger cars, and commercial vehicles.

Based on type, the PAYD segment held the largest share of the market in 2020. This is because it is economically beneficial to customers with short commutes. Furthermore, it encourages drivers to reduce overall mileage, which in turn help to reduce crashes.

Finally, based on region, the market is categorized into North America, Europe, Asia Pacific, and Rest of the World.

Regional Insights

North America is expected to Remain at the Forefront Backed by increasing adoption of Mobility-as-a-service

North America is expected to remain at the forefront and hold the highest position market during the forecast period owing to the increasing adoption of Mobility-as-a-service and increasing collaborations between OEMs and insurance and telematics companies in this region. The market stood at USD 11.91 billion in 2020.

Europe is anticipated to showcase significant automotive usage-based insurance market share owing to the regulated telematics market in the region. For instance, in 2017, Italy implemented a law that requires insurance carriers to install telematics devices in all automobiles and set premiums based on the real-time data obtained from these devices. Therefore, such a regulated market is expected to drive the regional market.

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Competitive Landscape

Key Players to Focus on Strengthening the Market Growth

The market for automotive usage-based insurance is consolidated by major companies striving to maintain their position by focusing on new launches and acquisitions. Moreover, other key players are adopting proactive strategies such as merger and acquisition, partnerships, and facility expansion that will favor the growth of the market in the forthcoming years.

List of Key Players Covered in the Automotive Usage-Based Insurance Market Report

  • Allstate Insurance Company (Illinois, U.S.)
  • State Farm Mutual Automobile Insurance Company (Illinois, U.S.)
  • Liberty Mutual Insurance (Massachusetts, U.S.)
  • AXA (Paris, France)
  • The Progressive Corporation (Ohio, U.S.)
  • Allianz (Munich, Germany)
  • American International Group, Inc. (AIG) (New York, U.S.)
  • MAPFRE (Madrid, Spain)
  • Assicurazioni Generali S.P.A. (Trieste, Italy)
  • Insurethebox (London, U.K.)
  • Verisk Analytics, Inc. (New Jersey, U.S.)
  • Arity, LLC (Illinois, U.S.)
  • TrueMotion, Inc. (Massachusetts, U.S.)
  • Insurance & Mobility Solutions (IMS) (Ontario, Canada

Automotive Usage-Based Insurance Market Segmentation:-

By Type

  • Pay-How-You-Drive (PHYD)
  • Pay-As-You-Drive (PAYD)
  • Manage-How-You-Drive (MHYD)

By Technology Type=

  • Smartphone
  • Embedded System
  • Black Box
  • Other Technologies

By Vehicle Type

  • Passenger Cars
  • Commercial Vehicles

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Table of Content:-

  • Introduction
    • Research Scope
    • Market Segmentation
    • Research Methodology
    • Definitions and Assumptions
  • Executive Summary
  • Market Dynamics
    • Market Drivers
    • Market Restraints
    • Market Opportunities
  • Key Insights
    • Porter’s Five Forces Analysis
    • SWOT Analysis
    • Technological Developments
    • Distribution Analysis
    • Impact of COVID-19 on Usage-Based Auto Insurance
  • Global Automotive Usage Based Insurance Market Analysis, Insights and Forecast, 2017-2028
    • Key Findings / Summary
    • Market Analysis, Insights and Forecast – By Type
      • Pay-How-You-Drive (PHYD)
      • Pay-As-You-Drive (PAYD)
      • Manage-How-You-Drive (MHYD)
    • Market Analysis, Insights and Forecast – By Technology Type
      • Smartphone
      • Embedded System
      • Black Box
      • Other Technologies
    • Market Analysis, Insights and Forecast – By Vehicle Type
      • Passenger Cars
      • Commercial Vehicles
    • Market Analysis, Insights and Forecast – By Region
      • North America
      • Europe
      • Asia Pacific
      • Rest of The World


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