Usage-Based Insurance (UBI) Market - Increasing Demand for Remote Diagnostic Technology across the Automotive Industry is Expected to Lead Market Growth – Growing at a Compound Annual Growth Rate (CAGR) 26.9% from 2022 to 2028
As stated in our extensive report; providing insights on Key Drivers, Key Restraints, Segments (i.e., by Technology, Packaging Type, Vehicle type and Region); the Global Usage-Based Insurance (UBI) Market accounted for USD 18.9 Billion in the year 2021.
“Key Factors Likely to Drive Growth of Usage-Based Insurance (UBI) Market”
Increasing demand for remote diagnostic technology across the automotive industry has the potential to drive industry growth. As vehicle complexity increases, the use of vehicle remote diagnostic systems with data-driven technology in the automotive sector is becoming increasingly important. Remote diagnostic technology provides a security mechanism that allows remote operators to monitor and control the vehicle. In the highly competitive insurance sector, remote diagnostic solutions paired with UBI allow organizations to establish new methods to differentiate their products and extend their client base, providing new ways to augment their customer base. Vehicle telematics solutions allow insurers to track different driving patterns and vehicle conditions and set vehicle premiums.
Automotive Usage-Based Insurance (UBI) captures real-time driving data using cutting-edge machine-to-machine technology and in-vehicle gadgets. Insurance companies can set and adjust premiums based on a person's driving behavior, rather than simply relying on billing history or demographics. For drivers, the risks assessed as premiums are entirely based on the driver's driving behavior, and safe driving allows for lower premiums. For insurers, UBI enhances profitability and accuracy by reflecting actual risks in premiums and policies. These factors affect the growth of the market.
The automotive sector plays a significant role in building the world economy. However, the outbreak of COVID19 disrupted the entire automotive supply chain globally in the second and third quarters of 2020, affecting new car sales 2020. It decreased by 14% in 2020. According to various insurers/institutions, the COVID 19 pandemic, however, boosted and influenced the UBI industry.
North America dominated the market in 2021. This is due to the increasing adoption of mobility as a service and the increasing collaboration between OEMs in the region and insurance and telematics technology companies.
Some of the key players in the Global Usage-Based Insurance (UBI) Market include- Allianz SE, Allstate Insurance Company, ASSICURAZIONI GENERALI S.P.A., AVIVA PLC, AXA, Cambridge Mobile Telematics, Danlaw Inc., Desjardins Group, The Box Limited, Intelligent Mechatronic Systems Inc., Liberty Mutual Insurance, Mapfre S.A., Metromile Inc., Nationwide, Octo Technology, Progressive Casualty Insurance Company, Sierra Wireless, State Farm Mutual Automobile Insurance Company, TomTom International BV, UnipolSai Assicurazioni S.P.A., Verizon Communication Inc., Vodafone Automotive S.P.A., Zubie Inc., and others.
Browse the full Report - Usage-Based Insurance (UBI) Market Size, Share & Trends Analysis Report by Package (PHYD, PAYD), by Technology (OBD-II, Smartphone, Black Box, Embedded Telematics), by Vehicle Type (Passenger Vehicle, Commercial Vehicle), by Region (North America, Europe, Asia Pacific, Latin America) - Global Industry Assessment (2016 - 2021) & Forecast (2022 - 2028)