The usage-based insurance market for automotive is estimated to be USD 28.43 billion in 2018 and is projected to reach USD 95.81 billion by 2025, at a CAGR of 18.95%. The growing market for connected cars services, increasing regular vehicle insurance, and increased customer acceptance of connected services will drive the market for usage-based insurance.
Don’t miss out on business opportunities in Usage-based Insurance Market. Download our PDF Brochure and gain crucial industry insights that will help your business grow:
Browse and in-depth TOC on “Usage-based Insurance Market”
65 – Tables
32 – Figures
150 – Pages
View more detailed TOC @
Usage-based insurance providers should focus on open platforms for integration of any application. For instance, Octo Telematics launched its Next Generation Platform (NGP), a business and technology investment of more than USD 40 million. The platform provided open access and seamless integration of any Application Programming Interface (API) as well as a fully-modular insurance telematics structure, offering flexibility through mix-and-match service selection. The development of the platform as an IoT ecosystem provided innovators the scope and ability to meet the rapidly growing global demand for user-based insurance. Hence, usage-based insurance providers should focus on such platforms having huge market demand across the world, especially Europe and the Americas.
Manage-how-you-drive or MHYD is the fastest growing usage-based insurance market by policy type. MHYD is an extended version of PHYD which provides feedback to drivers on improvement areas besides just ranking them based on driving behavior. This model is very much applicable for young drivers aged between 18 and 25 as they are inexperienced. The MHYD system works similar to a PHYD by collecting various driving behavior information such as harsh braking, sharp cornering, and overspeeding to rate the driver. The system also suggests improvements to the driver to help improve the driving behavior and ultimately reduce insurance premium. UBI companies can work together with telematics device manufacturers, insurance companies, and OEMs to develop MHYD plans that suit the requirements of different customers.
Request for Free Sample Report @ https://www.marketsandmarkets.com/requestsample.asp?id=154621760
Embedded system is projected to be the fastest growing usage-based insurance market by technology. Embedded refers to the use of inbuilt vehicle telematics to analyze and offer UBI services. With the growth in vehicle technology, connected cars are becoming prevalent. Connected cars offer various features which enable the use of telematics and infotainment services using the telematics device (telematics control unit). The inbuilt telematics is used to collect vehicle data and analyze the driving behavior to calculate insurance premiums. Embedded telematics is very accurate at capturing vehicle data as it is an integrated part of the system and does not require external calibration to register data. UBI providers can work directly with OEMs to capitalize on the increasing trend of connected cars in developed regions like the Americas and EME and also in developing markets such as Asia Oceania where the penetration of connected cars with embedded systems is increasing rapidly. UBI service providers can also provide plans specific for embedded systems which will give connected car owners further incentive to opt for UBI policies.
The increasing popularity of usage-based insurance can be an opportunity for both core insurance providers and OEMs to enter into the market of connected insurance. Additionally, the current UBI service providers can look for market opportunities within platforms, data analytics, and devices.
MarketsandMarkets™ provides quantified B2B research on 30,000 high growth niche opportunities/threats which will impact 70% to 80% of worldwide companies’ revenues. Currently servicing 7500 customers worldwide including 80% of global Fortune 1000 companies as clients. Almost 75,000 top officers across eight industries worldwide approach MarketsandMarkets™ for their painpoints around revenues decisions.
Our 850 fulltime analyst and SMEs at MarketsandMarkets™ are tracking global high growth markets following the “Growth Engagement Model – GEM”. The GEM aims at proactive collaboration with the clients to identify new opportunities, identify most important customers, write “Attack, avoid and defend” strategies, identify sources of incremental revenues for both the company and its competitors. MarketsandMarkets™ now coming up with 1,500 MicroQuadrants (Positioning top players across leaders, emerging companies, innovators, strategic players) annually in high growth emerging segments. MarketsandMarkets™ is determined to benefit more than 10,000 companies this year for their revenue planning and help them take their innovations/disruptions early to the market by providing them research ahead of the curve.
MarketsandMarkets’s flagship competitive intelligence and market research platform, “Knowledgestore” connects over 200,000 markets and entire value chains for deeper understanding of the unmet insights along with market sizing and forecasts of niche markets.
Mr. Shelly Singh
630 Dundee Road
Northbrook, IL 60062
USA : 1-888-600-6441