Usage-Based Insurance Market Revenue to Hit USD 115 Bn by 2026: Global Market Insights, Inc.

SELBYVILLE, Del., Dec. 5, 2019 /PRNewswire/ -- According to latest report "Usage-based Insurance Market by Package (PHYD, PAYD [Device-based, Telematics-based]), Technology (OBD-II, Smartphone, Blackbox, Embedded Telematics), Vehicle (Passenger Vehicle, Commercial Vehicle), Regional Outlook, Competitive Market Share & Forecast 2026", by Global Market Insights, Inc., the market valuation of usage-based insurance will reach $115 billion by 2026.

The usage-based insurance (UBI) market growth is attributed to steadily growing uptake of UBI platforms by insurance companies to accurately track driving patterns and align insurance premiums with the estimated risks. Insurance companies are increasingly partnering with solution providers to leverage embedded telematics solutions to increase profitability.

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Some major findings of the usage-based insurance market report include:

- The automotive sector is witnessing a dynamic change in the technology landscape due to which an increasing number of automobile manufacturers are focusing on integrating IoT and in-vehicle communications systems into vehicles

- To avail insurance, sophisticated onboard communication devices are providing real-time connectivity between vehicle and insurance companies, enabling them to remotely diagnose vehicle breakdown problems

- Device-based PAYD solutions, such as odometers, OBD dongles, and smartphones, are witnessing a rise in adoption to gather information to determine driving behavior, fuel efficiency, and road conditions

- Cloud-based telematics platforms are witnessing a rapid adoption, aiding insurers in quick & cost-effective implementation of usage-based products for their customers

- The increased penetration of smartphones will contribute to the market growth of UBI as users can easily access UBI apps through phones and measure their driving skills

- Some of the leading market players in the market are AXA, Allstate, Sierra Wireless, State Farm, Allianz, Liberty Mutual, Nationwide, Desjardins Group, UnipolSai, Progressive, Generali, Octo, Metromile, Vodafone Automotive, Mapfre S.A, Zubie, TomTom, Insure The Box, IMS, Cambridge Mobile Telematics, Danlaw, etc.

- Insurance providers are focusing on strategic collaborations and long-term contracts with automotive manufacturers to gain market share

The Pay-How-You-Drive (PHYD) insurance package held a major usage-based insurance market share of over 70% in 2018 and is expected to continue its dominance over the forecast timespan. This is attributed to the increasing popularity of PHYD among customers to reduce insurance premiums. Traditional insurance models were based on past driving history, whereas PHYD insurance focuses on present driving behavior to fix insurance premiums. Customers are leveraging this policy to reduce careless driving and are increasingly adopting safe driving practices to earn rewards & incentives. The PHYD policy is also beneficial to insurance providers as it reduces unanticipated fraudulent cases & accident risks and lowers insurance claims. The integration of other connected services, such as vehicle wellness reports and theft insurance programs, with PHYD packages, will further augment market growth.

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The smartphone segment is anticipated to register the fastest growth with a CAGR of nearly 35% from 2019 to 2026 due to the rapid proliferation of smartphone devices and ease of use. Customers are reaping the benefits of telematics solutions installed on their smartphones to evaluate their driving style and make necessary modifications to reduce high premiums. Insurance companies are partnering with software solution providers to offer smartphone-based telematics insurance programs to remain competitive.

The passenger vehicles segment held a major usage-based insurance (UBI) market share of nearly 85% in 2018 due to the surging sales of new passenger vehicles. As the automotive landscape is continuously changing with the introduction of next-generation technologies, the demand for passenger cars equipped with advanced telematics-based platforms to monitor driving habits & prevent any sudden failures is increasing several-fold.

Asia Pacific is set to witness a lucrative growth of over 26% CAGR from 2019 to 2026 due to the growing demand for telematics solutions in the region. The increasing focus of insurance providers on telematic technologies, especially in China and Japan, is driving the adoption of UBI policies across APAC. Commercialization of UBI technologies in the developing economies, such as India, Thailand, and Vietnam, will further proliferate market growth. The automotive manufacturers in the region are collaborating with insurance providers to develop customer-centric insurance products for their vehicles.

Companies operating in the usage-based insurance market are focusing on various business growth strategies, including investments in new telematics solutions, strengthening partner networks, and geographical expansion. Through such strategic moves, companies are trying to gain a broader market share and maintain their leadership in the market. For instance, in October 2018, ThingCo, an insurance company, partnered with Tk.cn to offer telematics-based motor insurance to drivers in China. Furthermore, insurance companies are designing new insurance policies to meet customer requirements in collaboration with automakers & telematics solution providers.

Browse key industry insights spread across 269 pages with 294 market data tables and 29 figures & charts from the report, "Usage-based Insurance (UBI) Market Size 2019-2026" in detail along with the table of contents @

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Table of Contents (ToC) of the report:

Chapter 3. Usage-based Insurance Market Insights

3.1. Introduction

3.2. Industry segmentation

3.3. Industry landscape, 2015-2026

3.4. UBI technology ecosystem analysis

3.4.1. Insurance companies

3.4.2. Automakers

3.4.3. Telematics solution providers

3.4.4. Smartphone providers

3.4.5. Telecom service providers

3.4.6. OBD device manufacturers

3.4.7. End users

3.5. Advantages of UBI

3.6. Working/Architecture of UBI technology

3.7. Technology & innovation landscape

3.7.1. IoT

3.7.2. AI and machine learning

3.7.3. 5G

3.7.4. Manage-How-You-Drive (MHYD)

3.8. OBD Standards

3.8.1. The California Air Resources Board (CARB)

3.8.2. The U.S. Environmental Protection Agency (EPA) Heavy Duty Engine Standards

3.8.3. The Society of Indian Automobile Manufacturers (SIAM)

3.8.4. The European OBD Standards

3.8.5. OBD II Standards

3.8.6. China VI Emission Standards

3.9. Regulatory landscape

3.9.1. General Data Protection Regulation (GDPR), Europe

3.9.2. Telematics In-Vehicle USD Million (IVU) Functional and Technical Specification, Australia

3.9.3. Compliance and enforcement framework for heavy vehicle telematics, NTC Australia

3.9.4. CSA 2010 (Compliance and Enforcement Program), U.S.

3.9.5. Automotive Industry Standard (AIS-140) Regulation

3.10. Industry impact forces

3.10.1. Growth drivers

3.10.2. Industry Pitfalls and Challenges

3.10.2.3. Increasing compatibility issues

3.11. Porter's Analysis

3.11.1. Threat of new entrants

3.11.2. Threat of substitutes

3.11.3. Bargaining power of buyer

3.11.4. Bargaining power of supplier

3.11.5. Industry rivalry

3.12. PESTEL analysis

3.13. Growth potential analysis

Browse Complete Table of Contents (ToC) @

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About Global Market Insights

Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider; offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.

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Related Images

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Global Usage-based Insurance (UBI) Market to witness around 21% growth to 2026: GMI
The Pay-How-You-Drive (PHYD) insurance package held a major usage-based insurance market share of over 70% in 2018 and is expected to continue its dominance over the forecast timespan. This is attributed to the increasing popularity of PHYD among customers to reduce insurance premiums.

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