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3. Usage Based Insurance Industry - Forthcoming Trends to Fuel the Global Growth

The usage based insurance market is projected to reach USD 80.7 billion by 2028 from an estimated USD 30.6 billion in 2023, at a CAGR of 21.4% during the forecast period. The usage based insurance market is witnessing rapid growth owing to an increase in the adoption of telematics devices in the automotive industry, smartphone enabled programs, and increased sales of connected cars. Leading manufacturers and service providers gather and analyze the data using telematics devices or connected car features, which has helped insurance providers assess a driver's risk profile. Additionally, all the UBI companies provide additional discounts on insurance to reward responsible drivers.

The usage based insurance industry is undergoing rapid evolution, driven by emerging trends and global forecasts.

Emerging trends in the global Usage Based Insurance Market are:

• Personalized Premiums
• Telematics Integration
• ncentivized Driving
• Advanced Analytics
• Market Expansion

These emerging trends collectively contribute to the growth and evolution of the Usage Based Insurance (UBI) Market, fostering more transparent and data-driven approaches to insurance pricing and promoting safer driving behaviors among policyholders.

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

Tailored Premiums:

• Insurers are increasingly providing UBI policies customized to individual driving habits, including factors like mileage, speed, and driving styles. This approach aims to ensure fairer pricing based on genuine risk, encouraging safer driving habits among policyholders.

Telematics Integration:

• The incorporation of telematics technology into vehicles allows for real-time data collection on driving behavior. Insurers utilize this information to offer UBI policies that accurately reflect each driver's risk profile, promoting a more transparent and data-driven approach to insurance pricing.

Driving Incentives:

• Many UBI programs feature incentive structures such as discounts, rewards, or cashback offers for policyholders exhibiting low-risk driving behaviors. These incentives act as motivators for drivers to adopt safer practices on the road.

Advanced Analytics:

• Insurers leverage advanced analytics and machine learning algorithms to analyze the extensive data collected through UBI programs. This enables insurers to gain deeper insights into driving behaviors and risk factors, refining their underwriting processes and improving pricing accuracy.

Market Expansion:

• The UBI market is experiencing significant growth as insurance companies worldwide acknowledge the benefits of personalized, data-driven insurance offerings. With the widespread adoption of connected vehicles and IoT technology, UBI is anticipated to become increasingly prevalent across various regions.

Related Reports:

Usage Based Insurance Market for ICE & Electric Vehicle, by Package (PAYD, PHYD, MHYD), Technology (OBD-II, Embedded Telematics Box, Smartphone), Vehicle (New, Old), Device Offering (BYOD, Company Provided) and Region - Global Forecast to 2028