IMARC Group's report titled "Usage-Based Insurance Market Report by Type (Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), Manage-How-You-Drive (MHYD), and Others), Technology (OBD II, Black Box, Smartphones, and Others), Vehicle Type (Light-Duty Vehicle (LDV), Heavy-Duty Vehicle (HDV)), Vehicle Age (New Vehicles, Used Vehicles), and Region 2024-2032". offers a comprehensive analysis of the industry, which comprises insights on the global usage-based insurance market outlook. The global market size reached US$ 51.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 307.6 Billion by 2032, exhibiting a growth rate (CAGR) of 21.3% during 2024-2032.
For an in-depth analysis, you can refer sample copy of the report: https://www.imarcgroup.com/usage-based-insurance-market/requestsample
Factors Affecting the Growth of the Usage-Based Insurance Industry:
- Expansion of Connected Car:
The widespread adoption of connected cars featuring built-in telematics systems, which constantly gather data on driving habits such as speed, acceleration, braking tendencies, and location details, is driving the surge in usage-based insurance (UBI). By tapping into real-time data, UBI allows insurers to tailor insurance packages, promote safe driving practices, boost customer interaction, and distinguish themselves in a competitive market. Additionally, insurers forge alliances with automotive Original Equipment Manufacturers (OEMs) to seamlessly incorporate UBI solutions into connected car platforms, streamlining enrollment procedures and elevating the overall user journey.
- Advancements in Telematics Technology:
Telematics gadgets, encompassing global positioning system (GPS) trackers, accelerometers, and sensors, meticulously record driving conduct, covering aspects like speed, acceleration, braking, cornering, and whereabouts. These innovations ensure accurate and exhaustive data gathering, laying the groundwork for usage-based insurance (UBI) initiatives. Moreover, contemporary telematics setups facilitate real-time monitoring of driving practices, granting insurers access to timely data, risk evaluation, and flexible pricing modifications reflective of ongoing behavior. Furthermore, these technologies empower insurers to furnish policyholders with individualized feedback and guidance tailored to their driving habits.
- Increasing Regulatory support and incentives:
Regulatory agencies establish frameworks and directives to spur insurers to innovate and introduce usage-based insurance (UBI) initiatives. By motivating insurers to provide UBI-driven rewards for safe driving, regulators aspire to enhance overall road safety and mitigate the societal expenses linked with traffic mishaps and injuries. Additionally, by delineating explicit criteria for data acquisition, retention, and utilization, regulators contribute to ensuring that UBI schemes safeguard policyholder personal data and adhere to pertinent data privacy regulations. Furthermore, they ensure that UBI initiatives comply with equitable pricing principles and uphold consumer protection benchmarks.
Leading Companies Operating in the Global Usage-Based Insurance Industry:
- Aioi Nissay Dowa Insurance UK Ltd
- Allianz SE
- Allstate Insurance Company
- American International Group Inc.
- Assicurazioni Generali S.p.A.
- AXA
- Liberty Mutual Insurance Company
- Mapfre S.A.
- Progressive Casualty Insurance Company
- State Farm Automobile Mutual Insurance Company
- TomTom International BV.
- UnipolSai Assicurazioni S.p.A. (Unipol Gruppo S.p.A)
Usage-Based Insurance Market Report Segmentation:
By Type:
- Pay-As-You-Drive (PAYD)
- Pay-How-You-Drive (PHYD)
- Manage-How-You-Drive (MHYD)
- Others
Pay-as-you-drive (PAYD) represents the largest market share as they offer insurance premiums based on the actual mileage driven by policyholders, making them highly attractive to a wide range of consumers.
By Technology:
- OBD II
- Black Box
- Smartphones
- Others
Black boxes account for the majority of the market due to their widespread adoption and versatility. They are easily installed in vehicles and collect a wide range of data on driving behavior, including speed, acceleration, braking patterns, and mileage.
By Vehicle Type:
- Light-duty Vehicle (LDV)
- Heavy-duty Vehicle (HDV)
Light-duty vehicle (LDV) accounts for the largest market share on account of the escalating demand for cost-effective and reliable insurance solutions.
By Vehicle Age:
- New Vehicles
- Used Vehicles
New vehicles exhibit a clear dominance in the market due to increasing preferences for personalized insurance solutions.
Regional Insights:
- North America: (United States, Canada)
- Asia Pacific: (China, Japan, India, South Korea, Australia, Indonesia, Others)
- Europe: (Germany, France, United Kingdom, Italy, Spain, Russia, Others)
- Latin America: (Brazil, Mexico, Others)
- Middle East and Africa
North America enjoys the leading position in the usage-based insurance market on account of regulatory support and favorable market conditions, contributing to the rapid expansion of UBI initiatives.
Global Usage-Based Insurance Market Trends:
The growing consciousness among the general populace regarding personalized insurance options is driving the uptake of usage-based insurance (UBI), as individuals pursue insurance rates that reflect their genuine driving conduct as opposed to conventional fixed-rate premiums. Moreover, it empowers drivers to potentially reduce their insurance expenses by showcasing safe driving practices, thereby bolstering market expansion.
Furthermore, the escalating collaborations and alliances between technology firms, automakers, and other relevant parties are easing access to sophisticated telematics solutions, data analysis capabilities, and broader customer outreach. This fosters innovation and broadens market penetration.
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
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