Automotive Ubi Usage Based Insurance Market | Contrive Datum Insights

The Automotive UBI (Usage-based Insurance) Market was valued at USD 31.21 billion in 2022 and is expected to reach USD 119.68 billion by 2028, growing at a CAGR of 21.2% from 2021 to 2030.

Automotive UBI (Usage-based Insurance) Market Overview

Automotive UBI (Usage-based Insurance) uses the latest machine-to-machine technology and in-vehicle equipment to capture real-time driving information. This enables insurers to set and adjust premiums based on an individual's driving behavior, rather than simply relying on claims history or demographic data. For drivers, insurance rates and risk assessments will be based entirely on their driving behavior, and safe driving can lower insurance premiums. For insurers, UBI improves profitability and accuracy through premiums and policies that take actual risk into account. These factors will influence the growth of the market. The global Automotive UBI (Usage-based Insurance) market size was valued at USD 28.27 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with automotive UBI witnessing negative demand shocks across all regions amidst the coronavirus crisis. According to our analysis, the global market is showing a steady growth of 1.02% in 2020.

The Automotive UBI (Usage-based Insurance) Market has been recently published by Contrive Datum Insights to its huge database which helps to shape the future of businesses by making well-informed business decisions. It offers a comprehensive analysis of various business aspects such as global market trends, recent technological advancements, market size, shares, and new innovations. Furthermore, this analytical data has been compiled through data exploratory techniques such as primary and secondary research. Moreover, an expert team of researchers throws light on various static as well as dynamic aspects of the global Automotive UBI (Usage-based Insurance) market.

Some of the key players profiled in the study are:

Different leading key players have been profiled to get better insights into the businesses. It offers detailed elaboration on different top-level industries which are functioning in global regions. It includes informative data such as company overview, contact information, and some significant strategies followed by key players: Allianz, AXA, Progressive, Generali Group, Insure The Box Ltd, Allstate, Desjardins, Metromile, Liberty Mutual, Aviva, Admiral Group, Ageas., and others.

Industry Development:

• December 2020 – Progressive Corporation launched Snapshot ProView, a voluntary UBI and fleet management program for small business owners. Depending on the type of vehicle and the nature of business use, many customers can save up to 8% on the initial term, and some can save as much as 18%.
• December 2020 - IMS announced that Berkshire Hathaway GUARD Insurance Companies selected the company to implement TrackMRI (Monitor, React, Improve), its new commercial fleet insurance program.

What are the major Applications, Types, and Regions for the Automotive UBI (Usage-based Insurance) Market?

By Type

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

By Technology

• OBD-II-based UBI programs
• Smartphone-based UBI programs
• Hybrid-based UBI programs
• Black-box-based UBI programs

By Vehicle Age

• New Vehicles
• Used Vehicles

By Vehicle Type

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

Automotive UBI (Usage-based Insurance) Market Regional Insights:

North America dominates the market (the U.S. holds the majority of the market share), valued at USD 12.1 billion in 2020. This can be attributed to the increasing adoption of mobility-as-a-service and collaborations between OEMs and insurance and telematics companies in the region. Asia Pacific is expected to exhibit a higher CAGR over the forecast period. This can be attributed to the proliferation of mobile connectivity and smartphone technology coupled with rising sales of telematics-equipped vehicles in the region. In addition, the presence of strong telecommunication infrastructure and mobile communication technologies in countries such as South Korea and China and the rapid expansion of connected vehicle networks are driving the growth of the market.
Europe is also expected to exhibit significant market growth owing to substantial regulatory support for the adoption of vehicle telematics. For example, in 2017, Italy implemented a law requiring insurers to install telematics devices in all cars and set premiums based on real-time data obtained from these devices.

Geographically, the global Automotive UBI (Usage-based Insurance) market has been analyzed in various regions such as North America, Europe, Asia-Pacific, Latin America, Middle East, and India. The global region is dominating this market in the upcoming future.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Automotive UBI (Usage-based Insurance) Market Report Scope:

Frequently Asked Questions (FAQ) about the Automotive UBI (Usage-based Insurance) market:

What is the CAGR of the global Automotive UBI (Usage-based Insurance) market?

The Automotive UBI (Usage-based Insurance) Market is growing at a CAGR of 21.2% during the forecast period.

Which region would offer high growth for vendors in the Automotive UBI (Usage-based Insurance) market?

North America dominates the market (the U.S. holds the majority of the market share), valued at USD 12.1 billion in 2020.

Which Is the Most potential market segment?

By Type

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

By Technology

• OBD-II-based UBI programs
• Smartphone-based UBI programs
• Hybrid-based UBI programs
• Black-box-based UBI programs

Which are the top industry players in the Automotive UBI (Usage-based Insurance) market?

Allianz, AXA, Progressive, Generali Group, Insure The Box Ltd, Allstate, Desjardins, Metromile, Liberty Mutual, Aviva, Admiral Group, Ageas.