the global Usage Insurance market is projected to grow at a compound annual rate (CAGR) of 17% between 2021 and 2031. The market is expected to reach US$ 150 Bn by the end of 2031.
The demand for Usage Insurance is expected to rise over the forecast period and the market is projected to gain a global market size worth of US$ 30 Bn by the end of 2020. According to the historical performance of the market, usage insurance uptake registered an impressive 10% CAGR to be valued at US$ 30 Bn in 2020. Prospects took a temporary dip in the first half of 2020, as the COVID-19 pandemic halted automotive manufacturing and distribution operations. Fortunately, the ever-surging EV popularity sustained demand.
Download a Sample Copy of This Report:https://www.factmr.com/connectus/sample?flag=S&rep_id=5352?PJ
In the long run, usage insurance providers are looking to leverage telematics as an effective technology to offer their services. Telematics-based insurance is highly accurate, as driving data can be instantly collected, enabling insurance providers to provide feedback regarding on-road driver and vehicular performance. Several developments are being witnessed, such as the recent takeover of TrueMotion by Cambridge Mobile Telematics in June 2021. After combining, Cambridge Mobile is to provide telematics services to 21 of the 25 largest auto insurers in the U.S.
How are Good Driving Practices Paving Way for Usage Insurance?
Incentives for better driving habits will increase drivers’ motivation to improve their driving behavior. It leads to fewer traffic violations and accidents, resulting in fewer claims for insurance companies. This could prevent most drivers from paying more in rates and thus save them some money.
Implementation of tools for tracking drivers’ driving behavior through the use of telematics is acquiring significant traction. The adoption of various technologies, including odometers, smartphones, and OBD dongles, has profoundly affected the driving behavior of consumers.
The coverage provided by usage-based insurance can offer current and ongoing details about driving habits, enabling appropriate calculation of rates and discounts quickly. The maximum discount offered is 25 percent, but most drivers receive a five to ten percent discount after recording driving.
Competitive Landscape
Strategic collaborations enable insurance industries to increase revenue and market share. New products and technologies will enable the growth of usage-based insurance in the insurance industry.
To accelerate expansion across Europe, insurance tech company bolttech acquired i-surance, a next-generation B2B2C digital insurance platform. Boltech now covers 26 countries across North America, Asia, and Europe following the acquisition of i-surance – including Switzerland, Belgium, Germany, France, Liechtenstein, Monaco, Luxembourg, Netherlands, Portugal, Poland, Spain, and the United Kingdom.
Bolttech intends to expand its insurance exchange services in Europe to provide both partners and customers with more choices.
Key players in the Usage Insurance Market
Insure the Box Limited
Allstate Insurance Company
State Farm
Uniqa Insurance Group AG
Groupama
Generali Group
UnipolSai Assicurazioni S.p.A
Key Takeaways from the Market Study
Global usage insurance market to surge 5x until 2031 as compared to 2021
Demand for pay-as-you-drive (PAYD) to account for 55% of global market revenue
Smartphone-based usage insurance likely to expand at a CAGR of 9% through 2031
By vehicle, commercial usage insurance to garner significant momentum, growing at 7% CAGR
U.S to capture half of the global usage insurance demand across the decade
Europe likely to register an expansion rate of 10% in value CAGR terms through 2031
Asia to account for a growth rate of a staggering 15% from 2021 to 2031