Usage Based Insurance Market Size, Share, Sales, Growth and Forecast 2019 to 2026

Image result for usage based insurance

The global ​usage based insurance market size is expected to reach around US$ 200 Bn by 2026, expanding at a CAGR of more than 30% during the forecast period 2019 to 2026.

The report analyzes and forecasts the usage based insurance market at global and regional levels. The market has been forecast based on volume (Tons) and value (US$ Mn) from 2019 to 2026. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report comprises a detailed value chain analysis, which provides a comprehensive view of the global usage based insurance market. The Porter’s Five Forces model has also been included to help understand the competitive landscape of the market. The study encompasses market attractiveness analysis, wherein various applications have been benchmarked based on their market size, growth rate, and general attractiveness.

Customized Requirements? Need a Sample?

Please Email us at: | Single User Licence US$ 3000 and Multi-user User Licence US$ 4000

The study provides a decisive view of the usage based insurance market by segmenting it in terms of form and application. The segment has been analyzed based on the present and future trends. Regional segmentation includes the current and projected demand in North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

The report provides size (in terms of volume and value) of usage based insurance market for the base year 2018 and the forecast between 2019 and 2026. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

Rising demand for accurate quotation of motor insurance among consumers, as a result of rising claims and fraud increasing the motor premium, is driving the Usage-based insurance market. Penetration of UBI is considerably high in Italy and South Africa, owing to high motor insurance cost due to high rate of theft/fraud in these countries. Insurance companies are taking active measures with pilot programs launched worldwide to boost the penetration of UBI.

Declining prices of connecting devices and connected mobility technologies is fueling the adoption of UBI. Demand for appropriate premium charges among consumers is rising, as conventional insurance charges a safe and rash driver equally. The UBI insurance model has variable charges based on the safe driving behavior of the driver and hence, demand for this model is expected to rise in the near future. The motor insurance industry is facing losses due to increasing competition and cost of claims. UBI insurance helps assess better risk and maintain profitability. 

In terms of policy type, the pay-as-you-drive (PAYD) segment held a dominant share of the global market. PAYD is a simple UBI model based on miles driven and hence, is widely accepted. Increasing adoption of telematics and advanced driver assistance features is projected to boost the pay-how-you-drive (PHYD) segment in the near future. PHYD takes into account various parameters such as acceleration, time of ride, route of ride, and sudden braking, and is more effective in gauging the risk of the driver.

Read more :