Connected Cars in Insurance - Thematic Research

Connected Cars in Insurance - Thematic Research


GlobalData forecasts that the connected car market will be worth $58.5bn by 2030, up from its $27.2bn evaluation in 2020 at a compound annual growth rate (CAGR) of 7.9%. A great proportion of the connected car market’s growth will not only be due to year-on-year expansion of connected vehicles on roads, but also due to the utilization of telematics technology. The expansion of the connected car market flags the potential for insurers to integrate personalized aspects to how motor insurance premiums are priced by utilizing vehicle data. Connected cars will lay the groundwork for insurers to access millions of data points generated by a vehicle's ability to engage with other devices through the Internet of Things. Connected cars will assist insurers in developing increasingly accurate pricing strategies for customers.

This report provides an in-depth analysis of the connected cars in insurance theme. It provides a thorough overview of the space, covering market size and claims, contextual and economic factors, regulations, and opportunities. The report also explores how the development of connected cars will impact the insurance value chain.


  • As connected cars have automatic data-generating capabilities, vehicle manufacturers will play an increased role in the distribution of motor insurance. Insurers will strike partnerships with manufacturers in order to ensure they have access to consumers’ driving data.
  • While there are insurers and insurtechs that are pushing efforts to create more personalized products in private motor, insurtechs are the ones that have adapted telematics to create usage-based insurance services to price premiums. Meanwhile, insurers have utilized telematics to mitigate aspects of risks related to claims and reward customers for “good” driving behavior.
  • Insurers that do not gain experience in connected vehicle data risk falling behind their rivals. Connected vehicles produce a massive amount of data, and insurers must build their capabilities and capacity to manage it.
Reasons to Buy
  • Benchmark yourself against the rest of the market.
  • Ensure you remain competitive as new innovations and insurance models begin to enter the market.
  • Be prepared for how regulation will impact the use of connected cars in insurance over the next few years.

  • Executive summary
  • Players
    • Table Figure 1: Who are the leading players in the connected cars in insurance theme and where do they sit in the value chain?
  • Thematic briefing
    • Connected cars
    • Infotainment
      • Table Figure 2: The future of in-car infotainment and human-machine interfaces
    • Telematics
      • Table Figure 3: Consumers utilizing telematics receive feedback and scores to encourage better driving behaviors
    • Vehicle to everything (V2X)
      • Table Figure 4: V2X will allow for traffic management and hazard reporting
  • Trends
    • Technology trends
      • Table Technology trends
    • Macroeconomic trends
      • Table Macroeconomic trends
    • Regulatory trends
      • Table Regulatory trends
  • Industry analysis
    • Market size and growth forecasts
      • Connected cars will become the norm
        • Table Figure 5: The global connected car industry is set to record a CAGR of 7.9% % over 2020-30e
        • Table Figure 6: Telematics technology revenue will expand over 2020-30e, recording a CAGR of 12.6%
      • Autonomous vehicles are paving the way for the expansion of connected cars
        • Table Top 10 countries pushing for autonomous vehicles on the roads, 2020
      • Telematics capabilities are the key component in connected cars
        • Table Figure 7: The US represents the largest motor insurance market
      • The impact of connected cars on the UK insurance market
        • Table Figure 8: GWP in the UK has been erratic owing to difficulties in determining how to price premiums
        • Table Figure 9: Claims in the UK have been declining whereas premiums have been fluctuating
        • Table Figure 10: Bodily injury-related claims contribute the most to total gross claims payouts
        • Table Gross claims paid by type, 2015-20
      • In-car technology
        • Table Figure 11: While connected car technology is becoming more popular, it is still not widely used
      • Telematics and UBI
        • Table Figure 12: The majority of consumers continue to hold standard motor insurance policies
      • Factors limiting uptake of telematics policies
        • Table Figure 13: Privacy concerns remain a barrier to the uptake of telematics and UBI policies
        • Table The Aviva Drive app has the potential to save customers money
    • Connected cars will lead to an increase in motor premiums
      • Table Figure 14: GWP growth will be seen in countries that lead the way in autonomous vehicle preparation
      • The UK market foreshadows GWP complications
        • Table Figure 15: Both an increase in premiums and an increase in policies will fuel growth in the UK motor market
      • Competition within the motor insurance market will increase
      • Uptake of connected vehicle technology highlights the different levels of autonomous vehicles
        • Table Figure 16: Autonomous vehicle levels
      • Cyber insurance
    • Mergers and acquisitions
      • Table Mergers and acquisitions
    • Strategic partnerships
      • Table Strategic partnerships
    • Timeline
      • Table Figure 17: The connected car story
  • Value chain
    • Table Figure 18: The connected cars in insurance value chain
    • Product development
    • Marketing and distribution
    • Underwriting and risk profiling
    • Claims management
    • Customer service
  • Companies
    • Public companies
      • Table Public companies
    • Private companies
      • Table Private companies
  • Sector scorecards
    • Insurance sector scorecard
      • Who's who
        • Table Figure 19: Who does what in the insurance space?
      • Thematic screen
        • Table Figure 20: Thematic screen
      • Valuation screen
        • Table Figure 21: Valuation screen
  • Glossary
    • Table Glossary
  • Further reading
    • GlobalData reports
      • Table GlobalData reports
  • Our thematic research methodology
    • Table Figure 22: Our five-step approach for generating a sector scorecard
  • About GlobalData
  • Contact Us

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