- Usage-Based Insurance (UBI) uses telematics and real-time data to offer personalized premiums based on driving behavior and mileage, encouraging safer driving and aligning insurance costs with individual risk profiles
- Growing connected vehicle adoption, consumer demand for affordable insurance, and telematics technology advancements are the main drivers increasing UBI market growth worldwide
- Asia-Pacific dominates the UBI market with a 42.3% revenue share in 2024, driven by rapid urbanization, rising vehicle sales, and strong government support for telematics-based insurance policies in countries like China and India
- North America is the fastest-growing region due to early adoption of UBI models, strong insurer partnerships with automakers, and increasing consumer interest in Pay-As-You-Drive (PAYD) and Pay-How-You-Drive (PHYD) insurance programs
- The Pay-How-You-Drive (PHYD) segment leads with 45.3% market share in 2024, offering premium discounts for safe driving and reducing claim costs, making it preferred by insurers and policyholders alike
