Usage-Based Insurance Market

Usage-Based Insurance Market for Automotive by Package type, Technology type (OBD-II, Blackbox, Smartphone, Embedded, and Other technologies), Vehicle type, Vehicle age, Device Offering, Electric & Hybrid vehicles, and Region - Global forecast to 2027

Report Code: AT 6582 Feb, 2020, by marketsandmarkets.com

Usage-Based Insurance Market for Automotive

Usage-based Insurance (UBI) Market: The growing popularity of usage-based insurance can be attributed to the rapid evolution of automotive telematics and the hardware and software involved in the accurate tracking of a driver’s behaviour. Insurers are making significant investments in R&D to develop the next-generation usage-based insurance for automotive to provide risk-free auto insurance.


Key Drivers:

  • Increasing adoption of telematics and connected cars
  • Reduction in insurance premium and risk-related costs

Key Restraints:

  • Ambiguity over regulations and legislative environments
  • Data privacy concerns and lack of standardization

Top 10 Players:

  • UnipolSai Assicurazioni S.p.A.: Founded in 2014 and headquartered in Bologna, Italy, the company operates as subsidiary of Unipol Gruppo S.p.A. The company provides solutions for mobility, home, protection, work and savings. The company operates in two business segments – Life and Non-life. It offers UBI services under the non-life segment. It has a large agency network in Italy, with 2,753 insurance agencies and 5,615 sub-agencies distributed throughout the country.
  • Progressive Casualty Insurance Company: The company was founded in 1937 and is hedquartered in Ohio, US. It operates through 3 segments, namely, personal lines, commercial lines, and property. The personal lines segment comprises insurance of personal automobiles and recreational vehicles through agencies and direct businesses. The commercial lines segment offers primary liability and physical damage insurance for automobiles and trucks owned and operated predominantly by small businesses such as auto, for-hire transportation, contractor, for-hire specialty, tow, and for-hire livery markets. The property segment offers residential property insurance for homeowners, other property owners, and renters.
  • Allstate Insurance Company: Established in 1931 and headquartered in Illinois (US), Allstate is one of the leading global insurance companies operating various industries such as automotive, home, life and business among others. The company operates under six reportable segments Allstate Protection, Service Businesses, Allstate Life, Allstate benefits, Allstate Annuities, and Corporate and Other. In the Allstate Protection segment, the company offers private passenger auto, homeowners and other personal lines insurance products to consumers through agencies as well as directly through contact centers and online. Allstate has agencies in 10,600 locations, which are supported by 26,900 licensed sales professional and 1,100 financial specialists.
  • State Farm Automobile Mutual Insurance Company: With headquarters in Illinois (US), State Farm was founded in 1922 and is the parent company of several affiliates and subsidiaries that property and life insurance, banking products and mutual funds. The company provides insurance solutions in home and property, life, health, disability and liability. The company operates in two business segments – Insurance and Banking. The company has its locations in Atlanta, Bloomington, Dallas and Phoenix.
  • Liberty Mutual Insurance Company: Headquartered in Boston (US), the company was established in 1912. It offers wide range of insurance products and services, including personal automobile, homeowners, specialty lines, reinsurance, commercial multiple-peril, workers compensation, commercial automobile, general liability, surety and commercial property. The company operates under two business segments – Global Retail Markets and Global Risk Solutions =. Global Risk Solutions offers a wide array of property, casualty, specialty and reinsurance coverage distributed through brokers and independent agents globally. The company employs nearly 50,000 people in 30 countries around the world.
  • Axa SA
  • Assicurazioni Generali S.p.A.
  • Allianz SE
  • Webfleet Solutions
  • Verizon

    Top Package Type:

    • Pay-as-you-Drive (PAYD)
    • Pay-how-you-Drive (PHYD)
    • Manage-how-you-Drive (MHYD)

    Top Technologies:

    • Embedded Systems
    • Smartphones
    • Blackbox
    • OBD-II
    • Manage-how-you-drive (MHYD) and Pay-how-you-drive (PHYD) segments are expected to register the high growth rate during the forecast period
    • Factors such as unique concept, growing developments in connected cars and increasing vehicle sales with OE-fitted telematics unit are expected to support the high market growth
    • PHYD and MHYD (an extension of PHYD) are cost-effective solutions compared to OBD-II and external black box and hence expected to hold huge potential

    [174 Pages Report] Estimated at USD 24.0 billion in 2019, the usage-based insurance market size is projected to reach USD 125.7 billion by 2027, growing at a CAGR of 23.0% during the forecast period. Factors such as lower insurance premium compared to regular insurance, government regulations on telematics, high adoption of connected car services, and growing on-road vehicles are expected to drive the demand for usage-based insurance market.

    Usage-based Insurance Market

    Asia Oceania and Europe are expected to be high-growth markets for usage-based insurance. The market growth in these regions can be attributed to government regulations on telematics and increasing developments in connected car services and autonomous vehicles in countries such as China, Japan, and western European countries. Furthermore, continuous R&D and collaborations among UBI companies in these regions are expected to fuel market growth.

    Light-Duty Vehicle (LDV) is expected to be the largest market

    By vehicle type, light-duty vehicle is estimated to be the largest market for usage-based insurance. Higher sales of LDVs vis-ΰ-vis HDVs have driven the growth of this vehicle segment. According to OICA, light commercial vehicles accounted for almost 95% of the total global vehicle sales in 2018. As the automotive industry continues to evolve with the introduction of next-generation technologies, the demand for LDVs equipped with advanced telematics-based platforms to monitor driving habits and prevent any sudden failures has increased. According to the January 2017 report published by the European Commission, nearly 90% of the new car sales in 2020 will include embedded telematics packages. As multiple automotive manufacturers partner with technology providers to promote the adoption of connected cars, the LDV segment is expected to benefit significantly.

    Embedded system is expected to be the fastest growing market

    The embedded system segment is expected to grow at the highest CAGR during the forecast period. Embedded system is very accurate at capturing vehicle data as it is an integrated part of the vehicle and does not require external calibration to register data. This also helps reduce the initial cost as the user does not have to buy a separate device (OBD-II or black box) to avail usage-based insurance. The market for embedded system-based UBI is thus directly related to the market for connected cars with inbuilt telematics.

    Usage-based Insurance Market

    North America is expected to lead the market during the forecast period

    North America is projected to be the largest market for usage-based insurance during the forecast period. The market in North America is expected to grow due to increasing adoption of Mobility as a service and increasing collaborations between telematics and insurance companies. The presence of leading UBI companies such as Progressive Casualty Insurance Company (US), Allstate Insurance Company (US), State Farm Automobile Mutual Insurance Company (US), and Liberty Mutual Insurance Company (US) is also expected to drive the market.

    The insurance companies offering telematics insurance are constantly leveraging on various factors to enhance solutions and deliver better packages and schemes. For instance, Progressive Insurance partnered with Toyota Insurance Management Solutions to provide owners of connected Toyota vehicles an opportunity to seek insurance discounts from Progressive Insurance. This benefit extended to any Toyota customer who purchased a 2018 or newer Toyota Camry, RAV4, or other vehicle model equipped with the latest connected vehicle technology. Further, the automotive UBI market players in the US have adopted various initiatives to enhance capabilities and boost their position in the market. They plan to introduce innovative solutions for connected cars and autonomous vehicles.

    Key Market Players

    The usage-based insurance market is led by globally established players such as UnipolSai Assicurazioni S.p.A (Italy), Progressive Casualty Insurance Company (US), Allstate Insurance Company (US), State Farm Automobile Mutual Insurance Company (US), and Liberty Mutual Insurance Company (US). These companies have strong distribution networks at a global level and offer an extensive product range. They have adopted strategies of new product development, acquisition, and contracts & partnerships to sustain their market position.

    Scope of the Report

    Report Metric

    Details

    Market size available for years

    2017–2027

    Base year considered

    2018

    Forecast period

    2019–2027

    Forecast units

    Value (USD Billion)

    Segments covered

    By package type, vehicle type, vehicle age, device offering, electric & hybrid vehicle, technology, and region

    Geographies covered

    Asia Oceania, North America, Europe, and Rest of the World

    Companies covered

    UnipolSai Assicurazioni S.p.A (Italy), Progressive Casualty Insurance Company (US), Allstate Insurance Company (US), State Farm Automobile Mutual Insurance Company (US), and Liberty Mutual Insurance Company (US)
    A total of 21 major players covered

    This research report categorizes the given market based on package type, vehicle type, vehicle age, device offering, electric & hybrid vehicle, technology, and region.

    Based on Package Type, the market has been segmented as follows:

    • Pay-As-You-Drive (PAYD)
    • Pay-How-You-Drive (PHYD)
    • Manage-How-You-Drive (MHYD)

    Based on Technology, the market has been segmented as follows:

    • OBD-II
    • Smartphone
    • Black Box
    • Embedded
    • Other technologies

    Based on Vehicle Type, the market has been segmented as follows:

    • Light-duty Vehicle (LDV)
    • Heavy-duty Vehicle (HDV)

    Based on Vehicle Age, the market has been segmented as follows:

    • New Vehicle
    • On-Road Vehicle

    Based on Device Offering, the market has been segmented as follows:

    • Bring Your Own Device (BYOD)
    • Company Provided

    Based on Electric & Hybrid Vehicle, the market has been segmented as follows:

    • Battery Electric Vehicle (BEV)
    • Hybrid Electric Vehicle (HEV)
    • Plug-in Hybrid Vehicle (PHEV)

    Based on region, the market has been segmented as follows:

    • Asia Oceania
      • China
      • India
      • Japan
      • South Korea
      • Rest of Asia Oceania
    • North America
      • US
      • Canada
      • Mexico
    • Europe
      • France
      • Germany
      • Italy
      • Spain
      • UK
      • Russia
      • Rest of Europe
    • Rest of the World
      • Brazil
      • UAE
      • Rest of RoW

    Critical Questions:

    • Many companies are operating in the usage-based insurance market space across the globe. Who, according to you, are the frontrunners, and what strategies have they adopted?
    • Fast-paced developments in usage-based insurance technologies such as embedded systems and smartphones are expected to change the dynamics of usage-based insurance market. How will this impact the overall market?
    • The report includes an analysis of your competition that includes major players in the usage-based insurance ecosystem. The major players are UnipolSai Assicurazioni S.p.A (Italy), Progressive Casualty Insurance Company (US), Allstate Insurance Company (US), State Farm Automobile Mutual Insurance Company (US), and Liberty Mutual Insurance Company (US) among others.
    • Discussion on your client’s imperatives based on our existing research on the usage-based insurance market and its ecosystems.

    To speak to our analyst for a discussion on the above findings, click Speak to Analyst

    Table of Contents

    1 Introduction (Page No. - 19)
        1.1 Objectives
        1.2 Product Definition
               1.2.1 Inclusions & Exclusions
        1.3 Market Scope
        1.4 Limitations
        1.5 Stakeholders

    2 Research Methodology (Page No. - 22)
        2.1 Research Data
        2.2 Secondary Data
               2.2.1 Key Secondary Sources for Vehicle Sales
               2.2.2 Key Secondary Sources for Market Sizing
               2.2.3 Key Data From Secondary Sources
        2.3 Primary Data
               2.3.1 Sampling Techniques & Data Collection Methods
               2.3.2 Primary Participants
        2.4 Market Size Estimation
               2.4.1 Bottom-Up Approach: Usage-Based Insurance Market
               2.4.2 Top-Down Approach: Usage-Based Insurance Market
        2.5 Market Breakdown and Data Triangulation
        2.6 Assumptions & Associated Risks

    3 Executive Summary (Page No. - 32)

    4 Premium Insights (Page No. - 35)
        4.1 Attractive Opportunities in the Usage-Based Insurance Market
        4.2 Usage-Based Insurance Market, By Region
        4.3 Usage-Based Insurance Market, By Vehicle Type
        4.4 Usage-Based Insurance Market, By Vehicle Age
        4.5 Usage-Based Insurance Market, By Package Type
        4.6 Usage-Based Insurance Market, By Technology
        4.7 Usage-Based Insurance Market, By Device Offering
        4.8 Usage-Based Insurance Market, By Electric & Hybrid Vehicle

    5 Market Overview (Page No. - 40)
        5.1 Introduction
        5.2 Years Considered for the Study
        5.3 Market Dynamics
               5.3.1 Drivers
                        5.3.1.1 Increasing Adoption of Telematics and Connected Cars
                        5.3.1.2 Reduction in Insurance Premium and Risk-Related Costs
               5.3.2 Restraints
                        5.3.2.1 Ambiguity Over Regulations and Legislative Environments
               5.3.3 Opportunities
                        5.3.3.1 Developing Automotive Usage-Based Insurance Ecosystem
               5.3.4 Challenges
                        5.3.4.1 Data Privacy
                        5.3.4.2 Lack of Standardized Systems
        5.4 Revenue Missed: Opportunities for Usage-Based Insurance Providers
               5.4.1 Revenue Shift Driving Market Growth
        5.5 Usage-Based Insurance Market, Scenarios (2018–2027)
               5.5.1 Usage-Based Insurance Market, Most Likely Scenario
               5.5.2 Usage-Based Insurance Market, Optimistic Scenario
               5.5.3 Usage-Based Insurance Market, Pessimistic Scenario

    6 Impact Analysis (Page No. - 48)
        6.1 Introduction
        6.2 Ride Sharing
        6.3 Autonomous Vehicles

    7 Usage-Based Insurance Market, By Package Type (Page No. - 52)
        7.1 Introduction
               7.1.1 Research Methodology
               7.1.2 Assumptions/Limitations
               7.1.3 Industry Insights
        7.2 Pay-As-You-Drive (PAYD)
               7.2.1 Cost Effectiveness and Faster Claims Settlement to Drive the PAYD Market
        7.3 Pay-How-You-Drive (PHYD)
               7.3.1 Increasing Sales of Vehicles Equipped With Telematics Will Drive the PHYD Market
        7.4 Manage-How-You-Drive (MHYD)
               7.4.1 Existing Mature Markets in North America and Europe Will Drive the MHYD Market

    8 Usage-Based Insurance Market, By Technology (Page No. - 58)
        8.1 Introduction
               8.1.1 Research Methodology
               8.1.2 Assumptions/Limitations
               8.1.3 Industry Insights
        8.2 OBD-II
               8.2.1 High Reliability and Customer Acceptance Will Drive the OBD-II Market
        8.3 Smartphone
               8.3.1 Cost Effectiveness and User Convenience Will Drive the Smartphone Market
        8.4 Embedded System
               8.4.1 Increasing Number of Connected Cars Will Drive the Embedded System Market
        8.5 Black Box
               8.5.1 Increasing Demand for Insurance Telematics Will Drive the Black Box Market
        8.6 Other Technologies
               8.6.1 Increasing Awareness About Auto Insurance and Government Policies Will Drive the Market for Other Technologies

    9 Usage-Based Insurance Market, By Vehicle Type (Page No. - 66)
        9.1 Introduction
               9.1.1 Research Methodology
               9.1.2 Assumptions/Limitations
               9.1.3 Industry Insights
        9.2 Light-Duty Vehicle (LDV)
               9.2.1 Advancements in Connected Car Technologies and Telematics Services Will Drive the LDV Market
        9.3 Heavy-Duty Vehicle (HDV)
               9.3.1 New Product Offerings and Increasing Sales of HDVs Will Drive the HDV UBI Market

    10 Usage-Based Insurance Market, By Vehicle Age (Page No. - 71)
         10.1 Introduction
                 10.1.1 Research Methodology
                 10.1.2 Assumptions/Limitations
                 10.1.3 Industry Insights
         10.2 New Vehicles
                 10.2.1 Increasing Sales of Vehicles With Telematics Will Drive the New Vehicles UBI Market
         10.3 On-Road Vehicles
                 10.3.1 Growing Awareness and Technological Advancements Will Drive the On-Road Vehicles UBI Market

    11 Usage-Based Insurance Market, By Device Offering (Page No. - 76)
         11.1 Introduction
                 11.1.1 Research Methodology
                 11.1.2 Assumptions/Limitations
                 11.1.3 Industry Insights
         11.2 Bring Your Own Device (BYOD)
                 11.2.1 High Convenience and Demand for Smartphone UBI Technology Will Drive the BYOD UBI Market
         11.3 Company Provided
                 11.3.1 Increasing Number of Vehicles With Advanced Safety Features Will Drive the Company Provided UBI Market

    12 Usage-Based Insurance Market, By Electric and Hybrid Vehicle (Page No. - 80)
         12.1 Introduction
                 12.1.1 Research Methodology
                 12.1.2 Assumptions/Limitations
                 12.1.3 Industry Insights
                 12.1.4 Electric & Hybrid Vehicle Sales Data
         12.2 Battery Electric Vehicle (BEV)
                 12.2.1 Increasing BEV Sales and Opportunities to Reduce Average Premium Will Drive the BEV Market
         12.3 Hybrid Electric Vehicle (HEV)
                 12.3.1 Attractive Government Policies to Promote Hybrid Vehicles Will Drive the HEV Market
         12.4 Plug-In Hybrid Vehicle (PHEV)
                 12.4.1 Increasing Sales of PHEV Equipped With Telematics Will Drive the PHEV Market

    13 Usage-Based Insurance Market, By Region (Page No. - 86)
         13.1 Introduction
                 13.1.1 Research Methodology
                 13.1.2 Assumptions/Limitations
                 13.1.3 Industry Insights
         13.2 Asia Oceania
                 13.2.1 China
                            13.2.1.1 Increasing Focus on IoT Will Drive the UBI Market
                            13.2.1.2 China Vehicle Sales Data
                            13.2.1.3 China Non-Life Insurance Companies
                 13.2.2 Japan
                            13.2.2.1 Increasing Number of Vehicles With Oe-Fitted Telematics Unit Will Drive the UBI Market
                            13.2.2.2 Japan Vehicle Sales Data
                            13.2.2.3 Japan Non-Life Insurance Companies
                 13.2.3 South Korea
                            13.2.3.1 Presence of Robust Telecommunications Infrastructure and Mobile Communications Technology Will Drive the UBI Market
                            13.2.3.2 South Korea Vehicle Sales Data
                            13.2.3.3 South Korea Non-Life Insurance Companies
                 13.2.4 India
                            13.2.4.1 Increasing Sales of Vehicles With Telematics Unit Will Drive the UBI Market
                            13.2.4.2 India Vehicle Sales Data
                 13.2.5 Rest of Asia Oceania
                            13.2.5.1 Rest of Asia Oceania Vehicle Sales Data
         13.3 Europe
                 13.3.1 Italy
                            13.3.1.1 Presence of Major UBI Providers Will Drive the UBI Market
                            13.3.1.2 Italy Vehicle Sales Data
                            13.3.1.3 Italy Non-Life Insurance Companies
                 13.3.2 UK
                            13.3.2.1 Demand for Connected Cars Will Drive the UBI Market
                            13.3.2.2 UK Vehicle Sales Data
                            13.3.2.3 UK Non-Life Insurance Companies
                 13.3.3 Germany
                            13.3.3.1 New Telematics-Based Product Launches Will Drive the UBI Market
                            13.3.3.2 Germany Vehicle Sales Data
                            13.3.3.3 Germany Non-Life Insurance Companies
                 13.3.4 France
                            13.3.4.1 Increasing Demand for Fleet Management Will Drive the UBI Market
                            13.3.4.2 France Vehicle Sales Data
                            13.3.4.3 France Non-Life Insurance Companies
                 13.3.5 Spain
                            13.3.5.1 High Penetration of Telematics in Lcv Fleet Will Drive the UBI Market
                            13.3.5.2 Spain Vehicle Sales Data
                 13.3.6 Russia
                            13.3.6.1 Increasing Demand for Safety Features Such as Anti-Theft to Drive the UBI Market
                            13.3.6.2 Russia Vehicle Sales Data
                 13.3.7 Rest of Europe
                            13.3.7.1 Emerging Start-Ups in Telematics Will Drive the UBI Market
                            13.3.7.2 Rest of Europe Vehicle Sales Data
         13.4 North America
                 13.4.1 US
                            13.4.1.1 Growing Popularity of Mobile Telematics Will Drive the UBI Market
                            13.4.1.2 US Vehicle Sales Data
                            13.4.1.3 US Non-Life Insurance Companies
                 13.4.2 Canada
                            13.4.2.1 Presence of UBI Insurance Providers Will Drive the UBI Market
                            13.4.2.2 Canada Vehicle Sales Data
                            13.4.2.3 Canada Non-Life Insurance Companies
                 13.4.3 Mexico
                            13.4.3.1 Increasing Sales of Premium Vehicles Will Drive the UBI Market
                            13.4.3.2 Mexico Vehicle Sales Data
         13.5 Rest of the World
                 13.5.1 Brazil
                            13.5.1.1 Popularity of Embedded Telematics Will Drive the UBI Market
                            13.5.1.2 Brazil Vehicle Sales Data
                 13.5.2 UAE
                            13.5.2.1 Government Efforts to Boost Safety Standards Will Drive the UBI Market
                            13.5.2.2 UAE Vehicle Sales Data
                 13.5.3 Rest of RoW
                            13.5.3.1 Growing Vehicle Fleet and Demand for Connected Cars Will Drive the UBI Market
                            13.5.3.2 Rest of RoW Vehicle Sales Data

    14 Competitive Landscape (Page No. - 119)
         14.1 Overview
         14.2 Usage-Based Insurance Market: Market Ranking Analysis
         14.3 Competitive Leadership Mapping
                 14.3.1 Terminology
                 14.3.2 Visionary Leaders
                 14.3.3 Innovators
                 14.3.4 Dynamic Differentiators
                 14.3.5 Emerging Companies
         14.4 Competitive Leadership Mapping: Usage-Based Insurance Providers
                 14.4.1 Strength of Product Portfolio
                 14.4.2 Business Strategy Excellence
         14.5 Competitive Leadership Mapping: Telematics Service Providers
                 14.5.1 Strength of Product Portfolio
                 14.5.2 Business Strategy Excellence
         14.6 Competitive Scenario
                 14.6.1 New Product Developments/Launch
                 14.6.2 Expansion
                 14.6.3 Acquisition
                 14.6.4 Partnerships/Contracts
         14.7 Right to Win

    15 Company Profiles (Page No. - 132)
    (Business Overview, Products Offered, Recent Developments, SWOT Analysis & MnM View)*
         15.1 Key Players
                 15.1.1 UnipolSai Assicurazioni S.P.A
                 15.1.2 Progressive Casualty Insurance Company
                 15.1.3 Allstate Insurance Company
                 15.1.4 State Farm Mutual Automobile Insurance Company
                 15.1.5 Liberty Mutual Insurance Company
                 15.1.6 AXA
                 15.1.7 Assicurazioni Generali S.P.A.
                 15.1.8 Allianz
                 15.1.9 Webfleet Solutions
                 15.1.10 Verizon
    *Details on Business Overview, Products Offered, Recent Developments, SWOT Analysis & MnM View Might Not Be Captured in Case of Unlisted Companies.
         15.2 Other Key Players
                 15.2.1 North America
                            15.2.1.1 Nationwide Mutual Insurance Company
                            15.2.1.2 Zubie, Inc
                            15.2.1.3 Cambridge Mobile Telematics
                            15.2.1.4 Modus Group, LLC
                            15.2.1.5 Metromile Inc.
                            15.2.1.6 Amica
                            15.2.1.7 Sierra Wireless
                 15.2.2 Europe
                            15.2.2.1 Octo Group S.P.A
                            15.2.2.2 Trak Global Group
                            15.2.2.3 Insure the Box Limited
                            15.2.2.4 Mapfre
                            15.2.2.5 The Floow

    16 Recommendations By Marketsandmarkets (Page No. - 163)
         16.1 North America Will Be the Major Market for Usage-Based Insurance
         16.2 Manage-How-You-Drive and Pay-How-You-Drive Can Be Key Plans for Insurance Service Providers
         16.3 Conclusion

    17 Appendix (Page No. - 165)
         17.1 Package Size
         17.2 Currency & Pricing
         17.3 Key Insights of Industry Experts
         17.4 Discussion Guide
         17.5 Knowledge Store: Marketsandmarkets Subscription Portal
         17.6 Available Customizations
                 17.6.1 Usage-Based Insurance Market, By Vehicle Type, By Country
                            17.6.1.1 Light-Duty Vehicle
                            17.6.1.2 Heavy-Duty Vehicle
                 17.6.2 Usage-Based Insurance Market, By Vehicle Type, By Vehicle Age, By Region
                            17.6.2.1 Asia Oceania
                            17.6.2.2 Europe
                            17.6.2.3 North America
                            17.6.2.4 RoW
                 17.6.3 Usage-Based Insurance Market, By Electric & Hybrid Vehicle Type, By Country
                 17.6.4 Usage-Based Insurance Market, By Off-Highway Vehicle Type, By Region
                            17.6.4.1 Construction
                            17.6.4.2 Agriculture
         17.7 Related Reports
         17.8 Author Details


    List of Tables (118 Tables)

    Table 1 Assumptions, Associated Risks, and Impact
    Table 2 Usage-Based Insurance Market (Most Likely), By Region, 2017–2027 (USD Million)
    Table 3 Usage-Based Insurance Market (Optimistic), By Region, 2017–2027 (USD Million)
    Table 4 Usage-Based Insurance Market (Pessimistic), By Region, 2017–2027 (USD Million)
    Table 5 Usage-Based Insurance Market, By Package Type, 2017–2027 (USD Million)
    Table 6 PAYD: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 7 PHYD: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 8 MHYD: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 9 Usage-Based Insurance Market, By Technology, 2017–2027 (USD Million)
    Table 10 OBD-II: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 11 Smartphone: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 12 Embedded System: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 13 Black Box: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 14 Other Technologies: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 15 Usage-Based Insurance Market, By Vehicle Type, 2017–2027 (USD Million)
    Table 16 LDV: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 17 HDV: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 18 Usage-Based Insurance Market, By Vehicle Age, 2017–2027 (USD Million)
    Table 19 New Vehicles: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 20 On-Road Vehicles: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 21 Usage-Based Insurance Market, By Device Offering, 2017–2027 (USD Million)
    Table 22 BYOD: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 23 Company Provided: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 24 Electric & Hybrid Vehicle Sales, 2016–2018 (’000 Units)
    Table 25 Usage-Based Insurance Market, By Electric and Hybrid Vehicle, 2017–2027 (USD Million)
    Table 26 BEV: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 27 HEV: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 28 PHEV: Usage-Based Insurance Market, By Region, 2017–2027 (USD Million)
    Table 29 Usage-Based Insurance Market for Automotive, By Region, 2017–2027 (USD Million)
    Table 30 Asia Oceania: Usage-Based Insurance Market for Automotive, By Country, 2017–2027 (USD Million)
    Table 31 China: Vehicle Sales, 2016–2018 (’000 Units)
    Table 32 China: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 33 China: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 34 China: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 35 Japan: Vehicle Sales, 2016–2018 (’000 Units)
    Table 36 Japan: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 37 Japan: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 38 Japan: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 39 South Korea: Vehicle Sales, 2016–2018 (’000 Units)
    Table 40 South Korea: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 41 South Korea: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 42 South Korea: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 43 India: Vehicle Sales, 2016–2018 (’000 Units)
    Table 44 India: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 45 India: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 46 Rest of Asia Oceania: Vehicle Sales, 2016–2018 (’000 Units)
    Table 47 Rest of Asia Oceania: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 48 Rest of Asia Oceania: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 49 Europe: Usage-Based Insurance Market for Automotive, By Country, 2017–2027 (USD Million)
    Table 50 Italy: Vehicle Sales, 2016–2018 (’000 Units)
    Table 51 Italy: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 52 Italy: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 53 Italy: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 54 UK: Vehicle Sales, 2016–2018 (’000 Units)
    Table 55 UK: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 56 UK: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 57 UK: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 58 Germany: Vehicle Sales, 2016–2018 (’000 Units)
    Table 59 Germany: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 60 Germany: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 61 Germany: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 62 France: Vehicle Sales, 2016–2018 (’000 Units)
    Table 63 France: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 64 France: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 65 France: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 66 Spain: Vehicle Sales, 2016–2018 (’000 Units)
    Table 67 Spain: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 68 Spain: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 69 Russia: Vehicle Sales, 2016–2018 (’000 Units)
    Table 70 Russia: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 71 Russia: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 72 Rest of Europe: Vehicle Sales, 2016–2018 (’000 Units)
    Table 73 Rest of Europe: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 74 Rest of Europe: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 75 North America: Usage-Based Insurance Market for Automotive, By Country, 2017–2027 (USD Million)
    Table 76 US: Vehicle Sales, 2016–2018 (’000 Units)
    Table 77 US: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 78 US: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 79 US: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 80 Canada: Vehicle Sales, 2016–2018 (’000 Units)
    Table 81 Canada: Top Non-Life Insurance Companies Gross Premium Written, 2017 (USD Million)
    Table 82 Canada: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 83 Canada: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 84 Mexico: Vehicle Sales, 2016–2018 (’000 Units)
    Table 85 Mexico: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 86 Mexico: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 87 Rest of the World: Usage-Based Insurance Market for Automotive, By Country, 2017–2027 (USD Million)
    Table 88 Brazil: Vehicle Sales, 2016–2018 (’000 Units)
    Table 89 Brazil: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 90 Brazil: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 91 UAE: Vehicle Sales, 2016–2018 (’000 Units)
    Table 92 UAE: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 93 UAE: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 94 Rest of RoW: Vehicle Sales, 2016–2018 (’000 Units)
    Table 95 Rest of RoW: Usage-Based Insurance Market for Automotive, By Package Type, 2017–2027 (USD Million)
    Table 96 Rest of RoW: Usage-Based Insurance Market for Automotive, By Vehicle Age, 2017–2027 (USD Million)
    Table 97 New Product Developments/Launch, 2017–2019
    Table 98 Expansion, 2018
    Table 99 Acquisition, 2019
    Table 100 Partnerships/Contracts, 2018–2019
    Table 101 UnipolSai Assicurazioni S.P.A: Organic Developments
    Table 102 Progressive Casualty Insurance Company: Organic Developments
    Table 103 Progressive Casualty Insurance Company: Inorganic Developments
    Table 104 Allstate Insurance Company: Organic Developments
    Table 105 Allstate Insurance Company: Inorganic Developments
    Table 106 State Farm Mutual Automobile Insurance Company: Organic Developments
    Table 107 State Farm Mutual Automobile Insurance Company: Inorganic Developments
    Table 108 Liberty Mutual Insurance Company: Organic Developments
    Table 109 Liberty Mutual Insurance Company: Inorganic Developments
    Table 110 AXA: Organic Developments
    Table 111 AXA: Inorganic Developments
    Table 112 Assicurazioni Generali Solutions: Inorganic Developments
    Table 113 Allianz: Organic Developments
    Table 114 Allianz: Inorganic Developments
    Table 115 Webfleet Solutions: Organic Developments
    Table 116 Webfleet Solutions: Inorganic Developments
    Table 117 Verizon: Organic Developments
    Table 118 Currency Exchange Rates (Wrt Per USD)


    List of Figures (58 Figures)

    Figure 1 Usage-Based Insurance Market: Market Segmentation
    Figure 2 Usage-Based Insurance Market: Research Design
    Figure 3 Research Design Model
    Figure 4 Breakdown of Primary Interviews
    Figure 5 Data Triangulation
    Figure 6 Usage-Based Insurance: Market Outlook
    Figure 7 Usage-Based Insurance Market, By Technology Type, 2019 vs 2027 (USD Million)
    Figure 8 Increasing Adoption of Telematics and Connected Car Services in Europe and North America is Expected to Drive the Usage-Based Insurance Market
    Figure 9 North America is Expected to Dominate the Usage-Based Insurance Market During the Forecast Period
    Figure 10 LDV Segment is Expected to Hold the Largest Market Share By 2027
    Figure 11 On-Road Vehicle is Projected to Become the Largest Market By 2027
    Figure 12 MHYD is Expected to Be the Fastest Growing Market During the Forecast Period
    Figure 13 Embedded System is Expected to Hold the Largest Market During the Forecast Period
    Figure 14 Company Provided Device is Expected to Hold the Largest Market During the Forecast Period
    Figure 15 BEV is Expected to Hold the Largest Market During the Forecast Period
    Figure 16 Usage-Based Insurance Market: Market Dynamics
    Figure 17 Connected Car Market Size, 2019 vs 2027 (USD Million)
    Figure 18 Automotive Telematics Market Size, 2017 vs 2022 (USD Million)
    Figure 19 Automotive IoT Services Market Size, 2016 vs 2022 (USD Billion)
    Figure 20 Top Smart Mobility Attack Vectors, 2018
    Figure 21 Penetration (%) of UBI in Ride Sharing Market
    Figure 22 Usage-Based Insurance Market in Level 1 Semi-Autonomous Vehicle, 2017–2022 (Thousand Units)
    Figure 23 Usage-Based Insurance Market in Level 2 & 3 Semi-Autonomous Vehicle, 2017–2022 (Thousand Units)
    Figure 24 Usage-Based Insurance Market in Level 4 & 5 Autonomous Vehicle, 2023–2030 (Thousand Units)
    Figure 25 Usage-Based Insurance Market, By Package Type, 2019 vs 2027 (USD Million)
    Figure 26 Usage-Based Insurance Market, By Technology, 2019 vs 2027 (USD Million)
    Figure 27 Usage-Based Insurance Market, By Vehicle Type, 2019 vs 2027 (USD Million)
    Figure 28 Usage-Based Insurance Market, By Vehicle Age, 2019 vs 2027 (USD Million)
    Figure 29 Usage-Based Insurance Market, By Device Offering Type, 2019 vs 2027 (USD Million)
    Figure 30 Usage-Based Insurance Market for Automotive, By Electric and Hybrid Vehicle, 2019 vs 2027 (USD Million)
    Figure 31 Usage-Based Insurance Market for Automotive, By Region, 2019 vs 2027 (USD Million)
    Figure 32 Asia Oceania: Usage-Based Insurance Market Snapshot
    Figure 33 Europe: Usage-Based Insurance Market for Automotive Snapshot
    Figure 34 North America: Usage-Based Insurance Market Snapshot
    Figure 35 RoW: Usage-Based Insurance Market, 2019 vs 2027 (USD Million)
    Figure 36 Usage-Based Insurance Market Ranking Analysis, 2018
    Figure 37 Usage-Based Insurance Providers: Competitive Leadership Mapping (2018)
    Figure 38 Usage-Based Insurance Providers: Company-Wise Product Offering Analysis
    Figure 39 Usage-Based Insurance Providers: Company-Wise Business Strategy Analysis
    Figure 40 Telematics Service Providers: Competitive Leadership Mapping (2018)
    Figure 41 Telematics Service Providers: Company-Wise Product Offering Analysis
    Figure 42 Telematics Service Providers: Company-Wise Business Strategy Analysis
    Figure 43 Companies Adopted New Product Development & Partnerships/ Agreements/Supply Contracts/Collaborations/Joint Ventures as the Key Growth Strategy, 2017–2019
    Figure 44 UnipolSai Assicurazioni S.P.A: Company Snapshot
    Figure 45 SWOT Analysis: UnipolSai Assicurazioni S.P.A
    Figure 46 Progressive Casualty Insurance Company: Company Snapshot
    Figure 47 SWOT Analysis: Progressive Casualty Insurance Company
    Figure 48 Allstate Insurance Company: Company Snapshot
    Figure 49 Allstate Insurance Company: SWOT Analysis
    Figure 50 State Farm Mutual Automobile Insurance Company: Company Snapshot
    Figure 51 State Farm Mutual Automobile Insurance Company: SWOT Analysis
    Figure 52 Liberty Mutual Insurance Company: Company Snapshot
    Figure 53 Liberty Mutual Insurance Company: SWOT Analysis
    Figure 54 AXA: Company Snapshot
    Figure 55 Assicurazioni Generali Solutions: Company Snapshot
    Figure 56 Allianz: Company Snapshot
    Figure 57 Webfleet Solutions: Company Snapshot
    Figure 58 Verizon: Company Snapshot

    The study involved four major activities to estimate the current size of the usage-based insurance market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The bottom-up and top-down approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of various segments and subsegments.

    Secondary Research

    In the secondary research process, various secondary sources have been used to identify and collect information useful for an extensive commercial study of the usage-based insurance market. Secondary sources include company annual reports/presentations, press releases, industry association publications [such as publications on vehicle sales, EEA (European Energy Agency), IEA (International Energy Agency), ACEA (European Automobile Manufacturers Association), T&E (Transport and Environment), country-level automotive associations and trade organizations, and the US Department of Transportation (DOT)], UBI related magazine articles, directories, technical handbooks, World Economic Outlook, trade websites, and technical articles. Additionally, secondary research has been carried out to understand the average insurance premiums by vehicle type, historic sales of new vehicles, and vehicle parc.

    Primary Research

    In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included industry experts such as CXOs, vice presidents, directors from business development, marketing, product development/innovation teams, and related key executives from various key companies. Various system integrators, industry associations, independent consultants/industry veterans, and key opinion leaders were also interviewed.

    Primary interviews have been conducted to gather insights such as ICE vehicle and electric vehicle sales forecast, UBI market forecast, UBI penetration, future technology trends, and upcoming technologies in the UBI industry. Data triangulation was then done with the information gathered from secondary research. Stakeholders from demand as well as supply side have been interviewed to understand their views on the aforementioned points.

    Primary interviews have been conducted with market experts from UBI providers and UBI technology providers across four major regions, namely, North America, Europe, Asia Oceania, and the Rest of the World. A similar percentage of primary interviews have been conducted from the UBI providers and UBI technology providers, respectively. Primary data has been collected through questionnaires, emails, and telephonic interviews. In the canvassing of primaries, we have strived to cover various departments within organizations, such as sales and operations, to provide a holistic viewpoint in our report.

    After interacting with industry experts, we have also conducted brief sessions with highly experienced independent consultants to reinforce the findings from our primaries. This, along with the in-house subject matter experts’ opinions, has led us to the findings as described in the remainder of this report.

    Usage-based Insurance Market

    To know about the assumptions considered for the study, download the pdf brochure

    Market Size Estimation

    The top-down and bottom-up approaches were used to estimate and validate the total market size. These methods were also used extensively to estimate the size of various sub-segments in the market. The research methodology used to estimate the market size includes the following:

    • The key players in the industry and markets have been identified through extensive secondary research.
    • The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
    • All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.

    Data Triangulation

    After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and sub-segments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and sub segment, data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends.

    Report Objectives

    • To define, describe, and forecast the usage-based insurance market, in terms of value (USD million), which includes the following segments:
    • By Package type [pay-as-you-drive (PAYD), pay-how-you-drive (PHYD), manage-how-you-drive (MHYD)]
    • By Technology type [OBD-II, smartphone, black box, embedded system, and other technologies]
    • By Vehicle type [light-duty vehicles, heavy-duty vehicles]
    • By Vehicle age [new vehicle and on-road vehicle]
    • By Device offering [bring your own device (BYOD) and company provided]
    • By Electric and Hybrid Vehicle [battery electric vehicle (BEV), hybrid electric vehicle (HEV), plug-in hybrid vehicle (PHEV)]
    • By Region (Asia Oceania, Europe, North America, and RoW)
    • To understand the market dynamics (drivers, restraints, opportunities, and challenges) of the usage-based insurance market
    • To analyze the market ranking of key players operating in the usage-based insurance market
    • To understand dynamics of the usage-based insurance market competitors and distinguish them into visionary leaders, innovators, emerging companies, and dynamic differentiators according to their product portfolio strength and business strategies
    • To analyze recent developments, alliances, joint ventures, mergers & acquisitions, new product launches, and other activities carried out by key industry players in the usage-based insurance market

    Available Customizations

    With the given market data, MarketsandMarkets offers customizations in accordance with the company’s specific needs.

    Usage-based insurance market, by vehicle type, by country

    • Light-duty vehicle
    • Heavy-duty vehicle

    Note: Countries considered are Asia Oceania: China, Japan, India, South Korea, and Rest of Asia Oceania; North America:  US, Canada, and Mexico; Europe:  Italy, UK, Germany, France, Spain, Russia, and rest of Europe; RoW: Brazil, UAE and Rest of RoW

    Usage-based insurance market, by vehicle type, by vehicle age, by region

    • Asia Oceania
    • Europe
    • North America
    • RoW

    Usage-based insurance market, by electric & hybrid vehicle type, by country

    Note: Countries considered are: North America (US, Canada and Mexico), Europe (France, Germany, Spain, Italy, Netherlands, Norway, Sweden, Russia, and UK), Asia Oceania (China, India, South Korea and Japan) and RoW (Brazil & South Africa)

    Usage-based insurance market, by off-highway vehicle type, by region

    • Construction
    • Agriculture
    COVID-19

    Get in-depth analysis of the COVID-19 impact on the Usage-Based Insurance Market

    Benchmarking the rapid strategy shifts of the Top 100 companies in the Usage-Based Insurance Market

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    Report Code
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    Published ON
    Feb, 2020
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