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Global Strategic Analysis of Usage-based Insurance Market for Passenger Vehicles, Forecast to 2025

Global Strategic Analysis of Usage-based Insurance Market for Passenger Vehicles, Forecast to 2025

The strategic analysis of the Usage Based Insurance (UBI) market offers a 360-degree perspective of the connected insurance policies answering questions, such as: Where are the avenues for growth opportunities? What trends are affecting the growth of the market in different regions? It discusses the outlook for technologies such as telematics-based pay as you drive (PAYD) and pay how you drive (PHYD) solutions. The research also looks into key market participants who are and will impact the future of the motor insurance market.

UBI utilizes data that is gathered from smartphones, telematics devices, sensors, and applications analyzing driving behavior, including speeding and braking behaviors. Based on safe driving behavior (identified from the data gathered from an array of IoT devices mentioned above), a customer with a safe driving behavior is given a reward-based discounts or lower premium.

This research highlights market, technology, and regional trends so the reader will understand where opportunities await in the market. Top trends include data-enabled use cases, data monetization, and scenarios of technologies such as blockchain with case studies from top automakers. The forecasts for connected insurance policies are provided from 2017 to 2025 along with market share of telematics service providers and also insurance companies. The study also analyzes different devices required for data extraction and the pros and cons of each kind of device. Emphasis has been laid on smartphone as a sensor for data collection and the dongle market scenarios.

Furthermore, this study features important case studies of telematics service providers and insurance companies by looking into company portfolio of solutions and services, key associations in the industry, and also future outlooks. Device preference for connected insurance and the movement towards embedded telematics units in Europe are highlighted – for example, the eCall impact on insurance.

Car companies are evolving from the business of merely manufacturing and selling cars to providing related services and multi-modal mobility solutions to target new customers and future-proof their business. This research service focuses on different new business models which are on demand.

Association with the connected market is made which resonates with the addressable market. Specific angles to data monetization are analyzed, which translates into newer business models. Autonomous insurance philosophies and crash reconstruction using smartphone models and AI are also discussed in the study. Start-ups disrupting the insurance domain with innovative business models and on-demand schematics have been analyzed. Country profiles especially those of Italy and US have been analyzed as well and the next growth areas are identified as a part of this geographical research.


  • Executive Summary
    • Executive Summary—Key Findings
    • UBI Market Forecast 2017 and 2025
    • Global UBI Market—Market Share of TSPs and Insurance Companies
    • Estimate of Policies by Device Type
    • Global Motor Insurance Premium Market—AV Impact
    • Total OBD Adoption in North America
      • Table OBD II Automotive Aftermarket: Total OBD Adoption, NA, 2016–2023
    • Total OBD Adoption in Europe
      • Table OBD II Automotive Aftermarket: Total OBD Adoption, Europe, 2016–2023
    • UBI Ecosystem
    • Insurance Providers—Overview
    • Insurance Companies—UBI Analysis
    • OEM Partnerships with Insurance Companies and TSPs
    • Future UBI Services—Leverage IoT and Latest Technologies
    • Proactive First Notification Of Loss (FNOL)
    • Blockchain in UBI—Toyota
    • Artificial Intelligence (AI) Usage Across Insurance Industry
    • Autonomous Vehicles Impact Analysis
    • Octo Telematics—Market Share Analysis
    • UBI Pricing Model Analysis
    • UBI—2017 vs. 2025
  • Research Scope, Objectives, Background, and Methodology
    • Research Scope
    • Research Aims and Objectives
    • Key Questions this Study will Answer
    • Research Background
    • Related Frost & Sullivan Video Content Available for Support
    • Research Methodology
  • Automotive Usage Based Insurance Market—Introduction and Product Overview
    • UBI Business Model Definition
    • UBI Product Life Cycle Analysis
    • Connected Insurance
    • UBI Product Types—Telematics-based Insurance Delivery Options
    • Driver Scoring Graph
    • Driver Engagement Models from Insurance Companies
  • Automotive Usage Based Insurance Market—Market Size and Analysis
    • UBI Vendor Analysis
    • UBI Market Forecast—2017 and 2025
    • Global UBI Market—Market Share of TSPs and Insurance Companies
    • Estimate of Policies by Device Type
  • Automotive Usage Based Insurance Market— Regional Analysis
    • North America—UBI Market Analysis
    • Europe—UBI Market Analysis
    • Case Study—Telematics Insurance in Italy
    • LATAM—Telematics-Based Insurance Analysis
    • UBI Interest Map in India—A Snapshot
    • UBI Product Life Cycle Analysis—China
    • Pilot UBI Product in China—Ping An
  • Automotive Usage Based Insurance Market— Disruptive Business Models
    • On-Demand Insurance Business Model
    • Driving Factors for On-Demand Insurance
    • Pay Per Mile—By Miles Business Model
    • Impact of Crash Mitigating Technologies on Premium
  • Automotive Usage Based Insurance Market—Start-up Companies and Business Models
    • Nexar
    • Vision-Based Driver Scoring—Nexar
    • Dash
    • DashLabs
    • TrueMotion
    • Zendrive
    • The Floow
    • MyDrive Solutions
    • Cambridge Mobile Telematics (CMT)
  • Effect of Autonomous Car on UBI
    • Impact of Autonomous Cars on UBI
    • Parameters Considered for Motor Insurance Premium Calculations
    • Opportunity for Insurance Companies with Autonomous Cars
    • Motor Insurance Package
    • Possible Future Business Models of Motor Insurance Companies
  • Automotive Usage Based Insurance Market— Insurance Company Profiles
    • Insurance Companies—UBI Analysis
    • Insurance Company Benchmarking
    • Progressive
    • Allstate
    • Allstate—Drivewise Platform
    • State Farm
    • Hartford
    • Hartford—TrueLane Platform
    • Travelers
    • Swiss Re
    • Swiss Re—Swiss Re Automotive Solutions
    • Allianz
    • Allianz—Bonus Drive Platform
    • Marmalade Insurance
  • Data Monetization in UBI
    • Data Collection
    • The Floow—Helping OEMs to Monetize Data
    • UBI Business Model
    • Otonomo's Data Exchange Platform
    • Commercial Data Types Tracked by Otonomo
  • Telematics Service Provider Profiles
    • Octo Telematics—Overview and Market Share Analysis
    • Octo Telematics—UBI Capability
    • Octo Telematics—Ecosystem Snapshot
    • Octo Telematics—Link Program
    • LexisNexis Risk Solutions—Company Overview
    • LexisNexis—UBI Capability
    • Vodafone—UBI Solution
    • Verizon—UBI Solution
    • AT&T—UBI Solution
  • Automotive Usage Based Insurance Market—Growth Opportunity Analysis
    • Growth Opportunity—Partnerships and Business Models
    • Automotive UBI Companies
    • Automotive UBI—Strategic Imperatives
  • Conclusion
    • The Last Word—3 Big Predictions
  • Appendix
    • Market Engineering Methodology

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