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Automotive Usage Based Insurance Market to Grow at 26.0% CAGR to Hit USD 124.02 Billion by 2027 – Impact of COVID-19 Pandemic and Global Analysis by The Insight Partners

According to our new research study on “Automotive Usage Based Insurance Market Forecast to 2027 – COVID-19 Impact and Global Analysis by Technology Fitted (Smartphones, Black Box, and Dongles); and Policy Type (Pay-As-You-Drive (PAYD) and Pay-How-You-Drive (PHYD)); and Geography. The automotive usage based insurance market was valued at US$19.64 billion in 2019 and is expected to reach US$124.02 billion by 2027; it is estimated to grow at a CAGR of 26.0% during 2020–2027.

Presently, insurance providers are inclined to follow either the two routes, ie installation of hardware devices, where devices are equipped to the policyholders’ cars or the low-priced smartphone app route. Both of these methods of tracking information have their advantages and disadvantages, however, they are not commonly exclusive. An insurance provider might want a customer to download an app and later shift to a plug-in device. To stay competitive in the market, the insurance providers need to build internal capability, ie significant investment and efforts are required to establish liaison with telematics service providers. Before selecting an appropriate method to track information, an insurance provider needs to make several considerations. Most of the insurance providers use on-board diagnostics systems, ie OBDII (black boxes or dongles). However, other providers offer smartphone apps that are easier to access and economical. Comparatively very few of the insurance providers offer both the hardware and smartphone app.

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Companies Profiled in this report includes: Allstate Insurance Company, AXA SA, Allianz SE, Metromile, Inc., Ingenie Services Limited, Liberty Mutual Insurance Company, Octo Telematics SpA, Sierra Wireless, Inc., TomTom Telematics BV, Vodafone Automotive

Impact of COVID-19 Pandemic on Automotive Usage Based InsuranceMarket

Due to the outbreak of COVID-19, the count of car trips has dropped drastically across the world. Therefore, the drivers and the vehicle owners are seeking different criteria for making payment of insurance instead of making a flat rate, as the cars have been parked idle in the garages since last few months. Due to reduced trips of vehicles, the usage-based insurance is expected to be adopted highly. Thus, the companies are carefully monitoring the driving behavior because of restrictions imposed to curb the spread of COVID-19. To encourage safe driving in this pandemic situation, the need to measure the user’s driving behavior is a must. This pandemic situation would assist in stimulating the use of telematics more in the auto insurance industry..

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Market Insights–Automotive Usage Based InsuranceMarket

The increasing traction of Mobility-as-a-Service (MaaS) among the consumers is leading the third party service providers to procure increased count of vehicles so as to enhance the customer experience. This factor is also increasing the number of service providers across the globe; some of the prominent mobility-as-a-service providers are Uber, Lyft, Zipcar, Car2go, Beeline Singapore, UbiGo AB, and Smile Mobility, among others. The increasing procurement of vehicles by these vehicle service providers is a crucial factor influencing the market for telematics technology providers (TTP), telematics service providers (TSP), and auto insurers across the globe. With the rise in MaaS in these geographies, there has been a remarkable rise in the number of young drivers, who indulge themselves in rash driving causing fatal accidents. With an objective to reduce vehicle accidents, several telematics providers and insurance companies are partnering with each other to introduce advanced, robust, and attractive insurance solutions, thereby pacing up the telematics insurance or automotive usage based insurance market in the current scenario.

The report segments the Global Automotive Usage Based Insurance Market as follows:

Global Automotive UBI Market – By Technology Fitted

smartphones

black box

dongles

Others

Global Automotive UBI Market – By Policy Type

Pay-As-You-Drive (PAYD)

Pay-How-You-Drive (PHYD)

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About Us:

The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

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