Usage Insurance Market to Reach US$ 150 Billion Globally by 2031 at 17% CAGR: Fact.MR

Global demand for term insurance market (最作保院市場) reached nearly US$30 billion in 2020 and is expected to grow significantly to nearly US$150 billion by 2031. This is a fivefold increase over the forecast period 2021-203.

In the ever-evolving landscape of the insurance sector, a new paradigm is emerging - usage-based insurance (UBI). This innovative approach to insurance fundamentally changes the traditional model by adjusting premiums based on individual behavior and usage patterns, rather than relying solely on demographic factors. The Usage Based Insurance (UBI) market is poised to revolutionize the insurance industry by providing greater efficiency, better risk management and personalized coverage options.

𝐃𝐨𝐰𝐧𝐥𝐨𝐚𝐝 𝐚 𝐒𝐚𝐦𝐩𝐥𝐞 𝐂𝐨𝐩𝐲 𝐨𝐟 𝐓𝐡𝐢𝐬 𝐑𝐞𝐩𝐨𝐫𝐭:
https://www.factmr.com/connectus/sample?flag=S&rep_id=5352

𝐊𝐞𝐲 𝐏𝐥𝐚𝐲𝐞𝐫𝐬:

Insure the Box Limited
Allstate Insurance Company
State Farm
Uniqa Insurance Group AG
Groupama
Generali Group
UnipolSai Assicurazioni S.p.A
Liberty Mutual Group
Allianz SE
Progressive Corporation

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐔𝐬𝐚𝐠𝐞-𝐁𝐚𝐬𝐞𝐝 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞:

Usage-based insurance, also known as telematics insurance or joint insurance, uses advanced telematics technology to monitor and evaluate the behavior, driving and usage habits of policyholders. This data-driven approach enables insurers to offer personalized premiums tailored to individual risk profiles, rewarding safe driving behavior and encouraging policyholders to adopt safer practices.

𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐅𝐨𝐫𝐜𝐞𝐬 𝐁𝐞𝐡𝐢𝐧𝐝 𝐔𝐁𝐈 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧:

Enhanced Risk Assessment: By leveraging real-time data on driving behavior, UBI enables insurers to gain deeper insights into individual risk profiles and tailor premiums accordingly. This proactive approach to risk assessment allows insurers to more accurately price policies, mitigate risk, and prevent potential losses.
Improved Customer Engagement: UBI offers policyholders greater transparency and control over their insurance premiums, fostering a sense of empowerment and engagement. By providing feedback on driving behavior and offering incentives for safe driving, UBI encourages policyholders to adopt safer habits and reduce the risk of accidents.
Efficiency and Cost Savings: UBI enables insurers to streamline underwriting processes, reduce claims frequency, and lower administrative costs. By accurately pricing risk and incentivizing safe driving behavior, UBI can lead to cost savings for both insurers and policyholders, resulting in more affordable premiums and improved profitability.

𝐊𝐞𝐲 𝐓𝐫𝐞𝐧𝐝𝐬 𝐚𝐧𝐝 𝐈𝐧𝐧𝐨𝐯𝐚𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐔𝐁𝐈:

Advances in telematics technology: Rapid advances in telematics technology, including GPS tracking, accelerometers and on-board diagnostics, are driving innovation in UBI. Insurers use these technologies to collect and analyze large amounts of data on driving behavior, enabling more accurate risk assessment and more personalized pricing.
Expansion beyond auto insurance: while UBI initially gained traction in the auto insurance industry, its applications are spreading across. other types of insurance, including property, health and life insurance. Insurance companies are exploring new ways to leverage telematics data to provide personalized coverage options and encourage positive behavior across policy segments.

𝐂𝐨𝐦𝐩𝐞𝐭𝐢𝐭𝐢𝐯𝐞 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞:

Major players prioritize expanding their customer base.

Earnix, a global leader in advanced valuation, pricing and customized product solutions for insurance companies and banks, recently announced the acquisition of assets from artificial intelligence-enabled telematics provider Driveway Software Corporation. This strategic move combines Driveway's expertise and strengthens Earnix's capabilities with an experienced team. The acquisition underscores Earnix's commitment to expanding its offerings and market reach.

In a separate development, USAA on June 16, 2020 announced plans to acquire Noblr, a digital insurance company specializing in behavioral auto insurance. The acquisition of Noblr is aimed at military personnel and their families and is consistent with USAA's goal of strengthening competitiveness and improving service delivery. USAA cited financial sustainability as a key enabler for such acquisitions, allowing the company to innovate and expand its presence in the industry.

Key Segments Covered

By Policy Type
Pay-how-you-drive(PHYD)
Pay-as-you-drive(PAYD)
Manage-how-you-drive(MHYD)

By Product
Black Box
OBD Dongle
Smartphone
Others

By Vehicle
Passenger Vehicle
Commercial Vehicle

By Region
North America
Latin America
Europe
East Asia
South Asia
Oceania
MEA

𝐑𝐞𝐚𝐝 𝐌𝐨𝐫𝐞: https://www.factmr.com/report/5352/usage-insurance-market

Usage-Based Insurance represents a transformative shift in the insurance industry, offering a data-driven approach to risk assessment, personalized pricing, and enhanced customer engagement. By leveraging telematics technology and data analytics, insurers can unlock new opportunities for efficiency, customization, and innovation, ultimately delivering greater value to policyholders and driving positive outcomes for the insurance industry as a whole.

𝐂𝐨𝐧𝐭𝐚𝐜𝐭:

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