Usage Insurance Demand to Increase by 17% CAGR Steered by Increasing Focus on Vehicle Safety: Fact.MR

NEW YORK, Sept. 7, 2021 /PRNewswire/ -- Fact.MR – A Market Research and Competitive Intelligence Provider: The global usage insurance market is projected to grow at an impressive CAGR of 17% between 2021 and 2031. The market will exceed US$ 150 Bn by 2031 owing to increasing demand for paying the best insurance prices based on actual usage.

Following the unprecedented outbreak of COVID-19, the market witnessed a major setback due to disruptions in the supply-chain. This resulted in the drop in usage insurance sales during the FQ-20. In 2020, the market however surpassed valuation of US$ 30 Bn, registering growth at 10% CAGR.

As the one-size-fits-all approach to conventional automobile insurance becomes more complicated, usage-based insurance, which is considerably more dynamic and accurate, is gaining popularity.

Data on how far specific cars have been driven is gathered by a particular insurer and this is a new trend in automotive insurance. Insurance companies employ telematics, which are pre-installed in the car or supplemented with a plug-in device.

As per the National Association of Insurance Commissioners (NAIC), auto insurers must employ telematics for all of their cars as part of the new insurance requirements. In-built telematics is a typical characteristic of newly acquired automobiles. Hence, many companies are providing usage-based insurance, which is boosting market expansion.

Drivers will be more motivated to change their driving behaviors if they are offered incentives for doing so. It will result in fewer traffic infractions and accidents, as well as fewer insurance claims. Usage-based insurance coverage can give immediate and continuing information regarding driving patterns, allowing for rapid computation of rates and savings. Thereby, bolstering usage insurance growth through 2031.

Continuous research on usage-based insurance digitalization is driving the demand for sensors, such as wearable devices, car sensors, and smart applications used in mobile calls for new insurance services.

 "Usage-based insurance and telematics can provide a range of benefits such as reverse gear indication, speed threshold tracking, seat belt usage, hard braking, acceleration control, and voice guiding. These features are designed to reduce the risk of traffic accidents. These factors make both usage based insurance and telematics highly sought-after", said a Fact.MR analyst.

For More Information On How To Improve Your Usage Insurance Market Footprint, Request A Sample Here

https://www.factmr.com/connectus/sample?flag=S&rep_id=5352

Key Takeaways from Global Usage Insurance Market

• By policy type, pay-as-you-drive (PAYD) segment is estimated to account for over 55% of total market share.
• By product, smartphone-based usage insurance is anticipated to expand at 9% CAGR between 2021 and 2031.
• By vehicle, commercial usage insurance to witness significant growth rate of 7% CAGR in coming years.
• The market in the U.S. is expected to account for over 50% of total global usage insurance demand in forecast period.
• Europe is estimated to register expansion of market at 10% CAGR in projection period.
• Asia is anticipated to account for over 15% of overall market revenue between 2021 and 2031.

Growth Drivers:

• Increasing adoption of smartphones and telematics products across the globe is driving market growth.
• Integration of telematics and IoT in the vehicles will increase the adoption of usage-insurance, driving market growth in coming years.
• Increasing government's initiatives to improve vehicle safety is boosting demand for usage insurance across the globe.

Ask Your Usage Insurance Market Related Questions & Get Customized Reports https://www.factmr.com/connectus/sample?flag=RC&rep_id=5352

Competitive landscape

Key players are focusing on expanding their customer base by adopting inorganic strategies such as mergers and acquisitions. For instance,

·  Earnix has acquired the assets of Driveway Software Corporation, an AI-powered telematics provider. Driveways' robust and highly skilled team of domain-rich specialists will join it.

·  USAA is slated to buy Noblr, a digital insurer that offers behavior-based vehicle insurance, on June 16, 2020. The firm, which serves military members and their families, claims that its purchase would help it become more competitive by improving its services. The company's financial strength was also mentioned as a reason for its ability to acquire firms in this sector and expedite innovation.

Key players profiled in the market include:

• Insure the Box Limited
• Allstate Insurance Company
• State Farm
• Uniqa Insurance Group AG
• Groupama
• Generali Group
• UnipolSai Assicurazioni S.p.A
• Liberty Mutual Group
• Allianz SE
• Progressive Corporation

More Insights on Usage Insurance Market:

Fact MR provides an unbiased analysis of usage insurance market, presenting historical demand data (2016-2020) and forecast statistics for the period from 2021-2031. The study divulges compelling insights on the usage insurance market with a detailed segmentation on the basis of:

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

Key Questions Covered in the Global Usage Insurance Market Report

• The report offers insight into usage insurance demand outlook for 2021-2031
• The market study also highlights projected sales growth of usage insurance market between 2021 and 2031
• Usage insurance sales survey identifies key growth drivers, restraints, and other forces impacting prevailing trends and evaluation of current market size and forecast and technological advancements within the industry
• Usage insurance Market share analysis of the key companies within the industry and coverage of strategies such as mergers and acquisitions, joint ventures, collaborations or partnerships, and others

Explore Fact.MR's Coverage on the Automotive Domain

Automotive Exhaust Sensor Market - The use of microfabrication technology improves the accuracy and reliability of automotive exhaust sensors while also improving their response time, efficiency, communication capabilities, and robustness. The market for automotive exhaust sensors in Europe and North America has matured and is now stable, owing to a slack in production and rising competition from developing economies in Asia-Pacific excluding Japan (APEJ) and Latin America.

Hybrid Electric Vehicles Market - Hybrid electric vehicles have a number of advantages, including lower operating and maintenance costs and less pollution. With technological advancements, the portfolio for electric vehicles is constantly expanding, with many consumers in various regions preferring fully hybrid or mild hybrid vehicles. Newer and smarter algorithms are on their way to revolutionizing hybrid electric vehicle fuel efficiency. As a result of these trends, hybrid electric vehicles will command a sizable market share by 2031.

Automotive Steering Market - Car manufacturers are successfully producing automotive steering systems that can integrate features such as an anti-lock braking system or an electronic stability program as a result of technological advancements. Furthermore, automotive steering systems are adapting to ongoing innovation in the fields of power-consuming technologies and advanced driver-assistance systems with ease. Electronic power steering (EPS) systems are expected to gain traction in the global market for automotive steering systems.

About Fact.MR

Market research and consulting agency with a difference! That's why 80% of Fortune 1,000 companies trust us for making their most critical decisions. We have offices in US and Dublin, whereas our global headquarter is in Dubai. While our experienced consultants employ the latest technologies to extract hard-to-find insights, we believe our USP is the trust clients have on our expertise. Spanning a wide range – from automotive & industry 4.0 to healthcare & retail, our coverage is expansive, but we ensure even the most niche categories are analyzed. Reach out to us with your goals, and we'll be an able research partner.

Contact:
Mahendra Singh
US Sales Office:
11140 Rockville Pike
Suite 400
Rockville, MD 20852
United States
Tel: +1 (628) 251-1583
E: [email protected]

SOURCE Fact.MR

21%

more press release views with 

Request a Demo