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Global Usage-Based Insurance Market – Industry Trends and Forecast to 2030

  • Automotive
  • Upcoming Report
  • Jun 2023
  • Global
  • 350 Pages
  • No of Tables: 220
  • No of Figures: 60

Global Usage-Based Insurance Market – Industry Trends and Forecast to 2030

Market Size in USD Billion

CAGR - 26.66% Diagram

Diagram Forecast Period 2022–2030
Diagram Market Size (Base Year) USD 24.83 Billion
Diagram Market Size (Forecast Year) USD 164.44 Billion
Diagram CAGR 26.66%

Global Usage-Based Insurance Market, By Vehicle Type (Passenger Car, Commercial Vehicle), Package Type (Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD)), Device Offering (Company Provided, Bring Your Own Device (BYOD), Technology (OBD-II, Smartphone, Embedded System, Black Box, Others, Hybrid, Metal Forming Market for Automotive), Vehicle Age (New Vehicles, On-Road Vehicles), Electric and Hybrid Vehicle Type (Hybrid Electric Vehicle (HEV), Plug-In Hybrid Vehicle (PHEV), Battery Electric Vehicle (BEV)) – Industry Trends and Forecast to 2030.

Usage-Based Insurance Market

Usage-Based Insurance Market Analysis and Size

Usage-based insurance is called telematics insurance, which is known for the insurance policy that analyses the premium based on the usage of a vehicle or consumer driving behavior. User-based insurance includes various technologies, such as onboard diagnostic (OBD) II, black box, and smartphones. It effortlessly examines the reason for an accident, improves customer loyalty, and reduces claim fraud.

Data Bridge Market Research analyses that the usage-based insurance market, valued at USD 24.83 billion in 2022, will reach USD 164.44 billion by 2030, growing at a CAGR of 26.66% during the forecast period of 2023 to 2030. In addition to the market insights such as market value, growth rate, market segments, geographical coverage, market players, and market scenario, the market report curated by the Data Bridge Market Research team includes in-depth expert analysis, import/export analysis, pricing analysis, production consumption analysis, and pestle analysis.     

Usage-Based Insurance Market Scope and Segmentation  

Report Metric

Details

Forecast Period

2023 to 2030

Base Year

2022

Historic Years

2021 (Customizable to 2015 - 2020)

Quantitative Units

Revenue in USD Million, Volumes in Units, Pricing in USD

Segments Covered

Vehicle Type (Passenger Car, Commercial Vehicle), Package Type (Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD)), Device Offering (Company Provided, Bring Your Own Device (BYOD), Technology (OBD-II, Smartphone, Embedded System, Black Box, Others, Hybrid, Metal Forming Market for Automotive), Vehicle Age (New Vehicles, On-Road Vehicles), Electric and Hybrid Vehicle Type (Hybrid Electric Vehicle (HEV), Plug-In Hybrid Vehicle (PHEV), Battery Electric Vehicle (BEV))

Countries Covered

U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Market Players Covered

Cambridge Mobile Telematics (U.S.), insurethebox  (U.K.), Progressive Casualty Insurance Company (U.S.), The Modus Group, LLC (U.S.), Inseego Corp. (U.S.), Lemonade Inc. Metromile (U.S.), The Floow Limited (U.K.), Allstate Insurance Company (U.S.), Octo Group S.p.A (Italy), TomTom International BV.  (Netherlands), UNIPOLSAI ASSICURAZIONI S.P.A. (Italy), Assicurazioni Generali S.p.A (Italy), Liberty Mutual Insurance (U.S.), Equitable Holdings, Inc.(Italy), MAPFRE(Spain), Sierra Wireless (Canada), Verizon (U.S.), Allianz Partners  (Germany)

Market Opportunities

    • Penetration of smartphone technology
    • Safe and money saving for drivers

Market Definition

Insurance telematics and smartphone technologies are being utilized by car insurance providers to lower claim costs. By collecting data on various driving factors, such as acceleration, turns, braking, speed, and driver distraction, mobile telematics enables the creation of applications for young drivers. This shift towards smartphone-centric solutions enables real-time monitoring and analysis of driving behaviour, leading to personalized insurance premiums based on individual driving habits and encouraging safer driving practices.

Usage-Based Insurance Market Dynamics

Drivers

  • Increasing use of telematics devices

The growing acceptance of telematics devices and the rising popularity of pay-as-you-drive insurance plans help to drive the market. Telematics devices permit insurers to collect complete data on a policyholder's driving conduct, it offers extra modified and modified coverage. As more consumers become aware of the benefits of telematics-based insurance, as expected to see continued growth in this area.

  • Increasing popularity of pay-as-you-drive plane

UBI is growing in popularity of pay-as-you-drive insurance plans. These plans give an additional affordable method to insure your vehicle, the customer only have to  pay  the coverage which use, as fuel cost are relatively high so more customers are saving  money on their car insurance which  pay-as-you-drive plans are one way to do that, which can drive the market of insurance based market

Opportunities

  • Penetration of smartphone technology

Car insurance providers are increasingly leveraging insurance telematics and smartphone technologies to reduce claim-related costs. By capturing data on factors like car acceleration, turns, braking, speed, and driver distraction, mobile telematics is enabling the development of applications for young drivers. This shift towards smartphone-centric solutions allows for real-time monitoring and analysis of driving behaviour, facilitating personalized insurance premiums based on individual driving habits, and promoting safer driving practices, which creates an opportunity for an insurance based market

  • Enhancing safety and saving money

With the help of UBI, insurers can transform their customer relationship management with everyday reports, advice, and handmade monthly bills in place of a once-a-year association based on regenerations. Giving drivers greater transparency and control over costs cost, insurers can surge brand faithfulness, improve customer retention, and secure new business, which creates an opportunity for the user-based insurance market to grow

Restraints/Challenges

  • Customer privacy concern

Privacy concerns are one of the major issues in the present era, UBI has to address when it comes to gathering and using customer data. Insurance companies should guarantee that they are clear about how they use customer data and that customers understand them. Insurance companies must confirm that customer data is protected and sheltered from potential cyber threats, which is not done by maximum insurance companies and can cause privacy problems, as a result, it could hinder the market of insurance base market.

  • High cost of installations

User-based insurance, which relies on telematics technology to track driving behavior, can be expensive for many customers. The high cost of installing telematics devices in vehicles contributes to the overall cost of insurance. Telematics installation is a complex and technological process, which discourages some customers from adopting this type of insurance. As a result, the affordability of user-based insurance becomes a challenge for many individuals seeking cost-effective insurance options. As a result, it is expected to hinder the market of users based insurance market

This usage-based insurance market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the usage-based insurance market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Recent Developments

  • In 2021, The Progressive Corporation and Protective Insurance Corporation declared that they had signed a legally binding agreement in which Progressive agreed to buy all of Protective Insurance Corporation's outstanding Class A and Class B common shares.
  • In 2020, For small business owners, Progressive Corporation now provides Snapshot ProView, a voluntary UBI and fleet management program. Snapshot ProView is now a part of Smart Haul, Progressive's industry UBI program for truckers that uses Electronic Logging Device (ELD) data to offer discounts for defensive driving.  All other Commercial Auto customers who are not required by federal law to have an ELD can use Snapshot ProView.
  • In 2020, With effect from today, Lyft has chosen Liberty Mutual Insurance to offer insurance to drivers who use its ride-sharing platforms in Arizona, Michigan, New Mexico, Texas, and Utah. According to the program, Liberty Mutual offers particular insurance coverages in five states from the moment a driver turns on their Lyft app until they turn it off.
  • In 2019, In the event that there were no casualties, UnipolSai introduced Real-Time adjustment, a procedure that enables the insured to get a proposal from the adjuster within 24 hours of filing a claim. The procedure makes using the black box simpler.

Global Usage-Based Insurance Market Scope

The usage-based insurance market is segmented on the basis of vehicle type, package type, device offering, technology, vehicle age, and electric and hybrid vehicle type. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Vehicle Type

  • Passenger Car
  • Light-Duty Vehicle (LDV)
  • Commercial Vehicle
  • Heavy-Duty Vehicle (HDV)

Package Type

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

Device Offering

  • Company Provided
  • Bring Your Own Device (BYOD)

Technology

  • OBD-II
  • Smartphone
  • Embedded System
  • Black Box
  • Others
  • Hybrid
  • Metal Forming Market for Automotive

Vehicle Age

  • New Vehicles
  • On-Road Vehicles
  • Old Vehicle

Electric and Hybrid Vehicle Type

  • Hybrid Electric Vehicle (HEV)
  • Plug-In Hybrid Vehicle (PHEV)
  • Battery Electric Vehicle (BEV)

Usage-Based Insurance Market Regional Analysis/Insights

The usage-based insurance market is analysed and market size insights and trends are provided by country, vehicle type, package type, device offering, technology, vehicle age, and electric and hybrid vehicle type as referenced above.

The countries covered in the usage-based insurance market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific dominates the usage-based insurance market due to rising consumer awareness, growing growth of the automobile industry, increasing shifting focus towards remote diagnostic technology, and rising growth in the number of connected cars bringing new UBI in this region.

North America is anticipated to emerge as the largest market for usage-based insurance (UBI) due to attributed factors such as advanced telematics infrastructure, high smartphone penetration, and the presence of major insurance providers focusing on UBI offerings in the region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Usage-Based Insurance Market Share Analysis

The usage-based insurance market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to usage-based insurance market.

Some of the major players operating in the usage-based insurance market are:

  • Cambridge Mobile Telematics (U.S.)
  • insurethebox  (U.K.)
  • Progressive Casualty Insurance Company (U.S.)
  • The Modus Group, LLC (U.S.)
  • Inseego Corp. (U.S.)
  • Lemonade Inc. Metromile (U.S.)
  • The Floow Limited (U.K.)
  • Allstate Insurance Company (U.S.)
  • Octo Group S.p.A (Italy)
  • TomTom International BV.  (Netherlands)
  • UNIPOLSAI ASSICURAZIONI S.P.A. (Italy)
  • Assicurazioni Generali S.p.A (Italy)
  • Liberty Mutual Insurance (U.S.)
  • Equitable Holdings, Inc.(Italy)
  • MAPFRE(Spain)
  • Sierra Wireless (Canada)
  • Verizon (U.S.)
  • Allianz Partners  (Germany)


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Research Methodology:

Data collection and base year analysis are done using data collection modules with large sample sizes. The stage includes obtaining market information or related data through various sources and strategies. It includes examining and planning all the data acquired from the past in advance. It likewise envelops the examination of information inconsistencies seen across different information sources. The market data is analysed and estimated using market statistical and coherent models. Also, market share analysis and key trend analysis are the major success factors in the market report. To know more, please request an analyst call or drop down your inquiry.

The key research methodology used by DBMR research team is data triangulation which involves data mining, analysis of the impact of data variables on the market and primary (industry expert) validation. Data models include Vendor Positioning Grid, Market Time Line Analysis, Market Overview and Guide, Company Positioning Grid, Patent Analysis, Pricing Analysis, Company Market Share Analysis, Standards of Measurement, Global versus Regional and Vendor Share Analysis. To know more about the research methodology, drop in an inquiry to speak to our industry experts.

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FREQUENTLY ASK QUESTIONS

The Usage-Based Insurance Market will be worth USD 164.44 billion in the forecast period by 2030.
The Usage-Based Insurance Market growth rate is 26.66% during the forecast period.
Increasing use of telematics devices and Increasing popularity of pay-as-you-drive plane are the growth drivers of the Usage-Based Insurance Market.
The vehicle type, package type, device offering, technology, vehicle age, and electric and hybrid vehicle type are the factors on which the Usage-Based Insurance Market research is based.
Major companies in the Usage-Based Insurance Market are Cambridge Mobile Telematics (U.S.), insurethebox (U.K.), Progressive Casualty Insurance Company (U.S.), The Modus Group, LLC (U.S.), Inseego Corp. (U.S.), Lemonade Inc. Metromile (U.S.), The Floow Limited (U.K.), Allstate Insurance Company (U.S.), Octo Group S.p.A (Italy), TomTom International BV. (Netherlands), UNIPOLSAI ASSICURAZIONI S.P.A. (Italy), Assicurazioni Generali S.p.A (Italy), Liberty Mutual Insurance (U.S.), Equitable Holdings, Inc.(Italy), MAPFRE(Spain), Sierra Wireless (Canada), Verizon (U.S.), Allianz Partners (Germany).
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