The global usage-based insurance for automotive market size is estimated to reach USD 99.1 billion by 2027, expanding at a CAGR of 21.3%, according to a study conducted by Grand View Research, Inc. Technological advancements in the automotive insurance industry, such as the integration of telematics for insurance purposes, is accelerating market growth. Furthermore, the increasing number of government regulations for driver safety and decreased cost of connectivity solutions are further anticipated to drive the market growth.
Usage-based
insurance offers several advantages to insurers and consumers. The
telematics-based insurance allows the insurer to closely monitor the individual
vehicle or fleet performance resulting in inaccurate pricing of the insurance
premiums. Also, the data collected by the telematics device can improve fraud
monitoring by augmenting crash monitoring data with fraud data models to
recreate scenarios and detection of false claims. Furthermore, the adoption of
usage-based insurance gives consumers the ability to control their cost of the
premium by encouraging them to reduce the miles driven and to adopt safer
driving habits. Thus, fewer miles and safer driving also assist in reducing
accidents, vehicle emissions, and congestion.
The
market is characterized by intense competition by the major players operating
in the market. These players are focusing on entering into mergers and
acquisitions as part of their growth strategy to hold a competitive position in
the market. Moreover, the long-term benefits of the automotive insurance
sector, the market is witnessing mutual partnerships with telematics service
providers, helping to eliminate the design and deployment complexities related
to IT and analytics services.
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Usage-based
Insurance For Automotive Market Report Highlights
- The
Pay-How-You-Drive (PHYD) type segment held the largest revenue share in
2019. PHYD insurance policies are based on the driving pattern of the
consumers, thus rising popularity of PHYD among customers owing to reduce
insurance premiums is anticipated to drive the segment growth
- The
Manage-How-You-Drive (MHYD) is expected to witness significant growth over
the forecast period. This growth is attributed to real-time driving
feedback to the driver coupled with instantaneous discounts on insurance
premiums
- The
smartphone segment is projected to witness substantial growth over the
forecast period owing to ease of use and no additional requirement of the
external telematics device
- The passenger
vehicle type segment accounted for a market share exceeding 88.04% in 2019
owing to increasing sales of passenger vehicles coupled with new vehicles
with pre-installed telematics devices
- North America
held the largest revenue share exceeding 34.94% in 2019 and is anticipated
to expand at a CAGR of over 18.3% over the forecast period. This share is
attributed to the presence of technology providers and robust
infrastructure for installing the device
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About Grand View Research
Grand
View Research, Inc. is a U.S. based market research and consulting company, registered
in the State of California and headquartered in San Francisco. The company
provides syndicated research reports, customized research reports, and
consulting services. To help clients make informed business decisions, we offer
market intelligence studies ensuring relevant and fact-based research across a
range of industries, from technology to chemicals, materials and healthcare.
For more info visit @ https://www.grandviewresearch.com
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