Global Automotive Usage-Based Insurance Market 2018-2022
About Automotive Usage-Based Insurance
The global automotive insurance market is evolving with the growing automotive industry. With increasing need for safety, the insurance coverage for vehicles is also growing at higher premiums.
Technavio’s analysts forecast the global automotive usage-based insurance market to grow at a CAGR of 6.87 % during the period 2018-2022.
Covered in this report
The report covers the present scenario and the growth prospects of the global automotive usage-based insurance market for 2018-2022. To calculate the market size, the report considers the e driving mileage and driving behavior.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Automotive Usage-Based Insurance Market 2018-2022
Technavio recognizes the following companies as the key players in the global automotive usage-based insurance market: Allianz, Intelligent Mechatronic Systems, Watchstone Group, Octo Telematics, and Sierra Wireless
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is shared data plans to reduce data subscribers per user. We expect that the number of connected devices in the ecosystem will grow to more than 55 billion units by 2022 and that every person will have at least seven connected devices on an average. The billing model for the provision of telecom operators is still unclear.”
According to the report, one of the major drivers for this market is Flexible pricing scheme. The pricing scheme for UBI varies largely from that of traditional auto insurance. Traditional auto insurance relies on historical data such as driving record, credit-based insurance score, garage location, personal characteristics, vehicle type, vehicle use, previous claims, liability limits, and deductibles. The discounts on premium in traditional auto insurance were done by combining different parameters such as insurance on multiple vehicles, insurance with multiple carriers, and the availability of protection devices like airbags. Such kind of policies made traditional auto insurance a fixed cost, which was assessed and was required to be paid annually, semi-annually, or quarterly basis.
Further, the report states that one of the major factors hindering the growth of this market is High cost of telematic device installation. Automotive UBI solutions are very complex as they require extensive data management and analytics capabilities. In addition, embedded UBI solutions require an external device to be integrated into the vehicle, whose cost cannot be passed on to the customers. Insurers struggle to design a system that is best suited to the needs of end-users. Also, telematics being a highly technical process, its cost is expected to increase during the forecast period, which will increase the operating cost and restrain the market growth.
Allianz, Intelligent Mechatronic Systems, Watchstone Group, Octo Telematics, and Sierra Wireless
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