Automotive Usage Based Insurance Market to Hit USD 119.68 Billion by 2028 | Automotive Usage Based Insurance Industry Size, Share, Growth Factors, Trends, Forecast Report
Fortune Business Insights
4 min read
Key Prominent Players Covered in the Automotive Sensors Market are Allstate Insurance Company, State Farm Mutual Automobile Insurance Company, Liberty Mutual Insurance, AXA, The Progressive Corporation, Allianz, American International Group, Inc., MAPFRE, Assicurazioni Generali S.P.A., Insurethebox, Verisk Analytics, Inc, Arity, LLC, TrueMotion, Inc., Insurance & Mobility Solutions (IMS) and Others
Pune, India, Nov. 29, 2021 (GLOBE NEWSWIRE) -- The global automotive usage based insurance market size is expected to gain momentum by reaching USD 119.68 billion by 2028 while exhibiting a CAGR of 21.2% during the 2021-2028 period. In its report, titled “Automotive Usage Based Insurance Market, 2021-2028,” Fortune Business Insights mentions that the market stood at USD 28.27 billion in 2020 and USD 31.21 billion in 2021.
Automotive Usage Based Insurance (UBI) is the advanced machine-to-machine technology that gathers real-time driving information. This makes it easy for car owners and drivers to assess their insurance completely based on their driving behavior. Moreover, it increases profitability with premiums and policies accounting for actual risk. These factors will influence the growth of the market.
The pandemic benefitted the UBI market growth. For instance, the report from the Federal Highway Administration, in the U.S., states that the average number of miles driven decreased by 41% at one point.
In May 2020, Bain & Company re-ran their 2019 survey with more than 1,000 licensed drivers to know if UBI is comfortable and around 50% of drivers were comfortable with having their insurance adjusted based on speeding, distracted driving, where they drive, time of day they drive, and miles driven. This represents a year-over-year increase of more than 12%.
Click here to get the short-term and long-term impact of COVID-19 on this Market.
Safety and Economic Savings to Drive the Growth of the Market
UBI provides the advantage of having tailored made monthly bills instead of once a year based renewals. Moreover, it provides transparency, can assess risks more accurately, and is cost-effective. Furthermore, it ensures that the consumer of policies have margins on their insurance policies, and gives insights on what type of new consumer to target. It provides increased brand loyalty and thus improves customer retention that will propel the automotive usage based insurance market growth in upcoming years.
North America to Lead Backed by Presence of Telematics Service Provider in the Region
North America is expected to remain at the forefront and hold the highest position market during the forecast period owing to the presence of telematics providers in the region. For instance, Streamax, a local market player provides an AI-powered mobile surveillance and industrial management solutions provider for commercial vehicles in the region. The market stood at USD 11.91 billion in 2020.
Asia Pacific is anticipated to showcase significant automotive usage-based insurance market share owing to the presence of robust telecommunications infrastructure and mobile communications technology in the region.
Crucial Players to Emphasize on Intensifying the Market Competition
The market is associated by major companies determined to maintain their position by focusing on new launches and acquisitions. Moreover, other key players are embracing positive tactics such as merger and acquisition, partnerships, and facility expansion that will favor the growth of the market in the upcoming years.
Industry Development
December 2020 – IMS declared that Berkshire Hathaway GUARD Insurance Companies selected the company for a new commercial fleet insurance program, TrackMRI (Monitor, React, Improve).
List of Key Players Profiled in Automotive Usage Based Insurance Report
Allstate Insurance Company (Illinois, U.S.)
State Farm Mutual Automobile Insurance Company (Illinois, U.S.)
Liberty Mutual Insurance (Massachusetts, U.S.)
AXA (Paris, France)
The Progressive Corporation (Ohio, U.S.)
Allianz (Munich, Germany)
American International Group, Inc. (AIG) (New York, U.S.)
Fortune Business Insights™ offers expert corporate analysis and accurate data, helping organizations of all sizes make timely decisions. We tailor innovative solutions for our clients, assisting them to address challenges distinct to their businesses. Our goal is to empower our clients with holistic market intelligence, giving a granular overview of the market they are operating in.
Our reports contain a unique mix of tangible insights and qualitative analysis to help companies achieve sustainable growth. Our team of experienced analysts and consultants use industry-leading research tools and techniques to compile comprehensive market studies, interspersed with relevant data.
At Fortune Business Insights™ we aim at highlighting the most lucrative growth opportunities for our clients. We, therefore, offer recommendations, making it easier for them to navigate through technological and market-related changes. Our consulting services are designed to help organizations identify hidden opportunities and understand prevailing competitive challenges.
