New York, Aug. 26, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Usage-Based Insurance Global Market Report 2021: COVID-19 Implications And Growth" - https://www.reportlinker.com/p06130535/?utm_source=GNW
, Modus Group LLC, Octo Group, Safeco Insurance, State Farm Automobile Mutual Insurance Company, and TrueMotion Inc.
The global usage-based insurance (UBI) market is expected to grow from $34.53 billion in 2020 to $43.31 billion in 2021 at a compound annual growth rate (CAGR) of 25.4%. The change in growth trend can be attributed to the growing demand from the end-user industry. The market is expected to reach $104.79 billion in 2025 at a CAGR of 24.7%.
The usage-based insurance (UBI) market consists of sales of usage-based insurance services by entities (organizations, sole traders, and partnerships) that provide auto insurance services by placing monitoring devices in the vehicle. UBI is frequently powered by telematics technology, which is accessible in vehicles via a plug-in device or is pre-installed in the car system, and that can also be accessed via mobile apps and delivers insurers with a variety of data, including how far vehicle is driven, how it is driven, and where it is driven.
The main vehicle types of usage-based insurance are light-duty vehicles (LDV) and heavy-duty vehicles (HDV).Light-duty vehicles are passenger cars having a maximum gross vehicle weight less than 8500 lbs while heavy duty vehicles have a higher gross vehicle weight.
The different technologies include OBD-II-based UBI programs, smartphone-based UBI programs, hybrid-based UBI programs, black-box-based UBI programs and are used in various types of packages such as pay-as-you-drive (PAYD), pay-how-you-drive (PHYD), manage-how-you-drive (MHYD).
North America was the largest region in the usage-based insurance (UBI) market in 2020. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.
Technological advancements are shaping the usage-based insurance market.Major companies operating in the usage-based insurance sector are focused on developing technological solutions for usage-based insurance to strengthen their position in the market.
For instance, in June 2020, TATA AIG, an India-based general insurance company launched an AutoSafe device based on telematics technology. AutoSafe will be included in all policies and would provide personal accidental coverage of approximately $0.02 million for both the owner and the driver. The Auto Safe device is GPS-enabled and connected to a mobile app that saves all data, monitors distance traveled, and creates reports regarding the car health and driving behaviors of the policy holder.
In January 2021, The Allstate Corporation a US-based insurance company has acquired National General Holdings Corp for a deal amount of $4 billion.The acquisition would enable The Allstate Corporation to grow their personal lines insurance with an increase in market share.
The accident and health business of National General will further expand Allstate circle of protection. National General Holdings Corp is a US-based personal line insurance company that provides personal and commercial automobile insurance, health insurance, and other niche insurance products.
The expansion of the automobile industry is expected to propel the growth of the usage-based insurance market in the coming years.The automotive industry is made up of a diverse group of businesses and organizations that are involved in the design development, production, marketing, and sale of automobiles.
Car owners are interested in telematics-driven usage-based insurance since it provides low premiums for low-risk driving and high premiums for high-risk driving.As a result, by correcting their driving habits, individuals can drastically lower their insurance premiums.
According to the Economist Intelligence Unit (The EIU), in 2021, the global automotive sector is expected to grow rapidly, with new car sales increasing by 15% and commercial vehicle sales increasing by 16%. Electric vehicle sales are expected to increase from 2.5 million in 2020 to 3.4 million in 2021. Therefore, the growth in the automobile industry drives the growth of the usage-based insurance market.
The countries covered in the usage-based insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and USA.
Read the full report: https://www.reportlinker.com/p06130535/?utm_source=GNW
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