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Usage-based Insurance (UBI) Market Expected to Surpass US$ 200 Bn, Globally, by 2027: Transparency Market Research

Transparency Market Research  has published a new report titled, “Usage-based Insurance Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019–2027”. According to the report, the global usage based insurance market is anticipated to surpass US$ 200 Bn by 2026, expanding at a CAGR of more than 30% during the forecast period.

Rising demand for accurate quotation of motor insurance among consumers, as a result of rising claims and fraud increasing the motor premium, is driving the Usage-based insurance market. Penetration of UBI is considerably high in Italy and South Africa, owing to high motor insurance cost due to high rate of theft/fraud in these countries. Insurance companies are taking active measures with pilot programs launched worldwide to boost the penetration of UBI. 

Declining prices of connecting devices and connected mobility technologies is fueling the adoption of UBI. Demand for appropriate premium charges among consumers is rising, as conventional insurance charges a safe and rash driver equally. The UBI insurance model has variable charges based on the safe driving behavior of the driver and hence, demand for this model is expected to rise in the near future. The motor insurance industry is facing losses due to increasing competition and cost of claims. UBI insurance helps assess better risk and maintain profitability. 

usage based insurance market

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In terms of policy type, the pay-as-you-drive (PAYD) segment held a dominant share of the global market. PAYD is a simple UBI model based on miles driven and hence, is widely accepted. Increasing adoption of telematics and advanced driver assistance features is projected to boost the pay-how-you-drive (PHYD) segment in the near future. PHYD takes into account various parameters such as acceleration, time of ride, route of ride, and sudden braking, and is more effective in gauging the risk of the driver. 

Based on device type, the black box segment held a leading share of the global Usage-based insurance market. However, the smartphone segment is expected to expand in the near future, as it is a low-cost solution with no additional investment.

Based on region, the global usage-based insurance market has been segmented into North America, Latin America, Europe, Asia Pacific, and Middle East & Africa. North America and Europe is expected to lead the global Usage-based insurance market, owing to higher adoption of telematics supporting the UBI working and consumer awareness. 

Key players operating in the global usage-based insurance market include Progressive, AllState Insurance Company, AXA, AA, Allianz, Uniqa, Generalli, MAIF, Groupama, Aviva, Uniposai, Insure the Box, State Farm, and Liberty Mutual. 

The global usage-based insurance market has been segmented as follows: 

  • Global Usage-based Insurance Market, by Policy Type
    • PHYD
    • PAYD
    • MHYD
  • Global Usage-based Insurance Market, by Device Type
    • Black Box
    • OBD Dongle
    • Smartphone
    • Others
  • Global Usage-based Insurance Market, by Vehicle Type
    • Passenger Vehicle
    • Commercial Vehicle
  • Global Usage-based Insurance Market, by Region
    • North America
      • U.S.
      • Canada
    • Europe
      • Germany
      • France
      • U.K.
      • Spain
      • Italy
      • Rest of Europe
    • Asia Pacific
      • Japan
      • China
      • India
      • Australia/New-Zealand
      • Rest of Asia Pacific
    • Middle East & Africa
      • GCC
      • South Africa
      • Rest of Middle East & Africa
    • Latin America
      • Brazil
      • Mexico
      • Rest of Latin America
  • About Us

Transparency Market Research is a global market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants, use proprietary data sources and various tools and techniques to gather, and analyze information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.   

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