Usage-Based Insurance Market By Policy Type (Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD)), By Technology (OBD (On-Board Diagnostics)-II, Smartphone, Hybrid, Black Box), By Vehicle Age (New Vehicles, Used Vehicles), By Vehicle Type (Light-Duty Vehicle (LDV), Heavy-Duty Vehicle (HDV)): Global Opportunity Analysis and Industry Forecast, 2023-2032
Usage based insurance is a type of insurance in which the cost of the vehicle insurance is dependent on different factors which include usage of vehicle, distance covered by the vehicle and condition of the vehicle. In addition, various private and public companies across the globe are adopting usage-based insurance in order to provide insurance companies and public with better insurance policies. Moreover, UBI is often powered by telematics – technology that is available in vehicles using a plug-in device or is pre-installed in the car’s network, but can also be available through mobile applications – and provides insurers a range of data, from how drivers are braking and accelerating to their speeds, where they’re driving, and for how long they’re behind the wheel. The data collected gets sent to an insurance company, which can keep track of the distance driven for the basic pay-as-you-go insurance, or more broadly assess the risk profile of a specific driver in order to reward safer drivers with discounts on their insurance. The cost of insurance will then depend on how far a car is driven, but may also extend to correlate to an individual’s driving behaviors. Furthermore, adoption of cutting-edge technology among newly launched vehicle helps insurance companies to accurately find the usage of vehicle. In addition, adoption of advance technology such as telematics by various insurance companies for tracking and finding the usage of vehicles propels the growth of the market..
Growing adoption of usage-based insurance among the end user owing to its various features such as providing accurate and timely data collection methods and flexible insurance premiums boosts the growth of the global usage-based insurance market. In addition, factors such as higher possibility of the vehicle being recovered, in case of stolen, and lower fuel consumption have positively impacts the growth of the market. However, high installation cost of telematics and various data security issues are expected to hamper the market growth. On the contrary, adoption of advance technology such as smartphone based UBI & hybrid based UBI and increase in concerns regarding driver’s safety across the globe is expected to offer remunerative opportunities for the expansion of the market during the forecast period. Each of these factors is projected to have a definite impact on the growth of the usage-based insurance market.
The global usage-based insurance market is segmented into policy type, technology, vehicle age, vehicle type and region. In terms of type, the market is fragmented into pay-as-you-drive insurance (PAYD), pay-how-you-drive insurance (PHYD), and manage-how-you-drive insurance (MHYD). Depending on technology, it is bifurcated into OBD-II-based UBI programs, smartphone-based UBI programs, hybrid-based UBI programs, and black-box-based UBI programs. As per vehicle age the market is bifurcated into new vehicles and used vehicles. In terms of vehicle type the market is segmented into light-duty vehicle (LDV) and heavy-duty vehicle (HDV). Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the usage-based insurance market analysis are Allianz SE, Allstate Corporation, Aviva, AXA, Insurethebox, Liberty Mutual Insurance, Mapfre S.A., Nationwide Mutual Insurance Company, Progressive Corporation and UNIPOLSAI ASSICURAZIONI S.P.A. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Key Benefits For StakeholdersThe study provides an in-depth analysis of the global usage-based insurance market forecast along with the current and future trends to explain the imminent investment pockets.
Information about key drivers, restraints, and opportunities and their impact analysis on global usage-based insurance market trend is provided in the report.
The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
The quantitative analysis of the market from 2023 to 2032 is provided to determine the market potential.
Key Market SegmentsBy Policy TypePay-As-You-Drive (PAYD)
Pay-How-You-Drive (PHYD)
Manage-How-You-Drive (MHYD)
By TechnologyOBD (On-Board Diagnostics)-II
Smartphone
Hybrid
Black Box
By Vehicle AgeNew Vehicles
Used Vehicles
By Vehicle TypeLight-Duty Vehicle (LDV)
Heavy-Duty Vehicle (HDV)
By RegionNorth America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key Market PlayersLiberty Mutual Insurance Company
Mapfre S.A
Insurethebox
Allianz SE
Nationwide Mutual Insurance Company.
Progressive Casualty Insurance Company
Allstate Corporation
AXA
Aviva Life Insurance
UNIPOLSAI ASSICURAZIONI S.P.A
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