The Usage-Based Insurance Market is Predict to reach $161.5 Billion by 2030, at a CAGR of 25.5%

Usage-Based Insurance Market Growth, Trends and Report Highlights

According to a new report, published by KBV research, The Global Usage-based insurance Market size is expected to reach $161.5 billion by 2030, rising at a market growth of 25.5% CAGR during the forecast period.

The New Vehicles segment generated the highest revenue in the Global Usage-Based Insurance Market by Vehicle Age in 2022; thereby, achieving a market value of $96 Billion by 2030. UBI for new vehicles relies on the integration of telematics devices or systems. These devices, often connected to the vehicle's on-board diagnostics (OBD-II) port or integrated during manufacturing, collect real-time data on driving behavior, location, and other relevant metrics. UBI is particularly beneficial for new vehicles driven by individuals with low annual mileage. Low-mileage drivers can see significant cost savings as premiums directly correlate with the distance traveled. UBI for new vehicles is adaptable to advancements in technology. As vehicles become more connected and autonomous features become prevalent, UBI can incorporate additional data points and technologies to enhance risk assessment.

The Pay-As-You-Drive (PAYD) segment is registering a CAGR of 25 % during the forecast period. PAYD primarily focuses on the distance driven by the policyholder. Insurance premiums are directly linked to the number of miles or kilometers traveled. The rationale is that the more a vehicle is on the road, the higher the risk of accidents or incidents. PAYD allows for a more customized and dynamic risk assessment. Insurers can tailor premiums based on specific driving behaviors, rewarding safe and low-risk driving habits. This individualized approach promotes fairness and can result in cost savings for responsible drivers.

The Light-Duty Vehicle (LDV) segment led the Global Usage-Based Insurance Market by Vehicle Type in 2022; thereby, achieving a market value of $116 Billion by 2030. UBI for LDVs typically involves the use of telematics devices that are installed in the vehicle. These devices, often connected to the OBD-II port, collect real-time data on various driving behaviors, including acceleration, braking, speed, and mileage. LDVs in UBI programs may benefit from mileage-based premiums. This model is particularly advantageous for individuals who drive less frequently, as they can enjoy cost savings by paying insurance premiums based on the distance traveled.

The Black Box segment is growing at a CAGR of 25 % during the forecast period. Black box technology, commonly referred to as telematics devices, enables insurance providers to gather up-to-the-minute data regarding driver actions, including but not limited to acceleration, braking, speed, and cornering. This data is used to assess individual driving habits, allowing insurers to offer more personalized premiums based on actual driving performance rather than traditional risk factors like age or location. This data can be used to refine risk models, develop targeted marketing strategies, and improve overall risk management practices within the insurance industry.

Full Report: https://www.kbvresearch.com/usage-based-insurance-market/

The North America region dominated the Global Usage-Based Insurance Market by Region in 2022, and would continue to be a dominant market till 2030; thereby, achieving a market value of $52.8 Billion by 2030. The Europe region is anticipated to grow at a CAGR of 25.3% during (2023 - 2030). Additionally, The Asia Pacific region would witness a CAGR of 26.3% during (2023 - 2030).

List of Key Companies Profiled

• Liberty Mutual Holding Company Inc.
• Allstate Insurance Company
• MAPFRE RE, COMPAÑÍA DE REASEGUROS, S.A. (Cartera Mapfre, S.L.)
• The Progressive Corporation
• Nationwide Mutual Insurance Company
• MS&AD Insurance Group Holdings, Inc.
• Tesla, Inc.
• Hyundai Motor Company
• Octo Telematics S.p.A. (Renova Group)
• Zubie, Inc.

Usage-Based Insurance Market Report Segmentation

By Vehicle Age

• New Vehicles
• Used Vehicles

By Policy

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

By Vehicle Type

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

By Technology

• Black Box
• OBD (On-Board Diagnostics)-II
• Smartphone
• Hybrid

By Geography

• North America
  • US
  • Canada
  • Mexico
  • Rest of North America
• Europe
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Singapore
  • Malaysia
  • Rest of Asia Pacific
• LAMEA
  • Brazil
  • Argentina
  • UAE
  • Saudi Arabia
  • South Africa
  • Nigeria
  • Rest of LAMEA

Related Reports:

North America Usage-Based Insurance Market Size | 2030

• February-2024
• 107 Pages

LAMEA Usage-Based Insurance Market Size & Share 2030

• February-2024
• 120 Pages

Europe Usage-Based Insurance Market Size & Share 2030

• February-2024
• 119 Pages

Asia Pacific Usage-Based Insurance Market Size | 2030

• February-2024
• 121 Pages