Usage-Based Insurance Market Forecasts 2027; Europe to witness lucrative business opportunities
Usage-Based Insurance Market demand is projected to experience a healthy growth during 2021 to 2027 impelled by increasing adoption of in-vehicle connected insurance solutions for the reduction of unanticipated claims.
Selbyville, Selbyville – July 20, 2021 /MarketersMedia/ —
Usage-based insurance (UBI) market is poised to observe exponential growth from 2021 to 2027 driven by increasing adoption of in-vehicle connected insurance solutions for the reduction of unanticipated claims. Technological advancements in the developing and developed countries, transition of consumers towards more efficient smart vehicles, and the burgeoning automobile sector are factors likely to drive the demand for UBI plans. Robust production of commercial and passenger cars is encouraging the adoption of UBI policies. Global Market Insights, Inc., estimates that the usage-based insurance market demand could be worth over USD 125 billion by 2027.
Extensive use of in-car technologies will encourage more customers to opt usage-based insurance policies as they can share their driving information to attain personalized insurance quotes. Passenger vehicles are likely to be in high demand in the upcoming years credited to the wide use of Blackbox and OBD devices for monitoring information like vehicle health, and navigation.
Rising need to promote passenger safety is allowing SMEs to use UBI solutions. The logistics and transportation sectors are widely adopting usage-based insurance, telematics and other communication technologies for monitoring user’s driving patterns.
Several usage-based insurance market players are developing new solutions and products to cater to growing demand. For example, in 2020, Tata AIG announced the launch of its new and affordable usage-based insurance cover for private car owners, providing customized solutions towards one’s driving profile.
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Some of the most prominent usage-based insurance market trends are:
• Surging adoption of Pay-As-You-Drive package –
The Pay-As-You-Drive category is likely to record a CAGR of more than 20% through 2027 on account of its important role in monitoring and checking the mileage driven and then setting the pricing policies based on that mileage. The PAYD package promotes safe driving as customers might be charged more if they do not drive well. Moreover, under this program, companies provide several new schemes ranging from short-term, on-demand policies to low mileage discounts, giving enterprises more opportunities to offer more personalized insurance services for sustenance through stiff competition.
• Advancements in smartphone technology –
Based on technology, the smartphone segment is anticipated to grow substantially over the forecast timeframe owing to the extensive usage of smartphone-based telematics applications to provide vehicle parameters like fuel consumption and driving behavior. The presence of smartphone technology has further made usage-based insurance more accessible to customers and affordable for insurance providers.
• Lucrative business opportunities across Europe –
The Europe usage-based insurance market is expected to rise with a CAGR of above 20% on account of the enforcement of strict fuel regulations and compulsory OBD requirements by the European Commission. Additionally, the presence of renowned automobile manufacturers as well as their increasing brand value and sales could boost regional industry growth. In 2020, Bajaj Allianz introduced a new pay as you use motor insurance policy in India, allowing car owners to insure their vehicles for shorter time periods instead of the usual full year period.
About Global Market Insights, Inc.
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider, offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy, and biotechnology.
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Website: https://www.gminsights.com/pressrelease/usage-based-insurance-ubi-market
Source: MarketersMedia
Release ID: 89037461
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