How Much is the Usage Insurance Market Worth

According to a recent Fact.MR analysis, the global Usage Insurance market is expected to develop at a CAGR of 17% between 2021 and 2031. The market is predicted to reach $150 billion by the end of 2031.

Demand for Usage Insurance is estimated to increase throughout the projection period, with a global market size of $30 billion by the end of 2020.

According to industry history, use insurance uptake has grown at an amazing 10% CAGR and is expected to reach US$ 30 billion by 2020. Prospects took a temporary hit in the early half of 2020, when the COVID-19 epidemic interrupted car manufacturing and distribution activities. Fortunately, the growing popularity of electric vehicles has kept demand high.

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In the long run, usage insurance providers hope to use telematics as an effective technology to deliver their services. Telematics-based insurance is extremely precise since driving data can be captured quickly, allowing insurers to provide feedback on on-road driver and vehicle performance. Several advancements are occurring, including the recent acquisition of TrueMotion by Cambridge Mobile Telematics in June 2021. After joining, Cambridge Mobile will supply telematics services to 21 of the top 25 vehicle insurers in the United States.

Key players in the Usage Insurance Market

Insure the Box Limited
Allstate Insurance Company
State Farm
Uniqa Insurance Group AG
Groupama
Generali Group
UnipolSai Assicurazioni S.p.A

Key Takeaways from the Market Study

Global use insurance market could grow 5x by 2031 compared to 2021.
Pay-as-you-drive (PAYD) will account for 55% of global market revenue, while smartphone-based usage insurance is expected to grow at a 9% CAGR until 2031.
Commercial usage insurance for vehicles is expected to expand at a 7% CAGR, with the United States accounting for half of worldwide demand over the next decade.
Europe is expected to expand at a 10% value CAGR until 2031.
Asia would account for a remarkable 15% growth rate between 2021 and 2031.

How are Good Driving Practices Paving Way for Usage Insurance?

Incentives for better driving behaviors will boost drivers' motivation to improve their driving skills. It leads to fewer traffic offenses and accidents, which means fewer claims for insurance companies. This might prevent most drivers from paying higher rates, saving them money.

Implementation of methods for tracking drivers' driving behavior via telematics is gaining pace. The widespread adoption of numerous technology, such as odometers, cellphones, and OBD dongles, has had a significant impact on consumer driving behavior.

Usage-based insurance coverage can provide current and continuous information about driving behaviors, allowing for quick and accurate premium and discount calculations. The maximum discount granted is 25%, however most drivers receive a 5% to 10% reduction after documenting their driving.

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Competitive Landscape

Strategic agreements help insurance companies boost revenue and market share. New products and technologies will allow for the expansion of usage-based insurance in the insurance business.

Bolttech, an insurance technology firm, has acquired i-surance, a next-generation B2B2C digital insurance platform, to speed its expansion across Europe. With the acquisition of i-surance, Boltech now serves 26 countries in North America, Asia, and Europe, including Switzerland, Belgium, Germany, France, Liechtenstein, Monaco, Luxembourg, the Netherlands, Portugal, Poland, Spain, and the United Kingdom.
Bolttech plans to expand its insurance exchange services across Europe, giving both partners and customers more options.

Key Segments Covered in the Usage Insurance Industry Survey

Policy Type

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

Product

Black Box
OBD Dongle
Smartphone
Others

Vehicle

Passenger Vehicle
Commercial Vehicle

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This release was published on openPR.