(USGovernment-News.Com, May 06, 2019 ) The global automotive usage based insurance market for the technology fitted is fragmented into smartphones, black box, dongles, and others. The black box segment is expected to dominate the market in 2027. A black box is a small device that is installed in the customer's car to measure vehicle location, speed, driving frequency, distance travelled, and time of the day or night the vehicle is in motion. Further, other driving behaviors can also be measured which includes monitoring braking, and cornering. This helps in building a comprehensive profile of the driver. The data gathered on driving behaviors provides information on how safe the driving pattern is. This information is then converted into a score that is used by the car insurance provider for creating a customized premium for the driver. Also, an insurance provider can reward a driver securing high score with a lower premium rate. However, issues related to data privacy is a major concern among customers. Sharing personally identifiable information of customers gathered from black boxes with third parties such as law enforcement agencies or banks may result in invasion of privacy. This may hinder the market growth to certain extent.
The key players influencing the market are: 1. Vodafone Automotive 2. Liberty Mutual Insurance Company 3. Allianz SE 4. TomTom Telematics 5. Allstate Insurance 6. Octo Telematics 7. Metromile 8. Siera Wireless 9. Ingenie Service Ltd. 10. AXA SA
This report contains:
Market sizing for the global Automotive Usage Based Insurance Compare major Automotive Usage Based Insurance providers strategies and approaches to the challenges they face Analysis of the effects deglobalisation trends may have for Automotive Usage Based Insurance providers Profiles of major Automotive Usage Based Insurance providers 6-year CAGR forecasts for Automotive Usage Based Insurance -intensive vertical sectors
Presently, insurance providers are inclined to follow either the two routes, i.e. installation of hardware devices, where devices are equipped to the policyholders' cars or the low-priced smartphone app route. Both of these methods of tracking information have their advantages and disadvantages, however, they are not commonly exclusive. An insurance provider might want a customer to download an app and later shift to a plug-in device. To stay competitive in the market, the insurance providers need to build internal capability, i.e. significant investment and efforts are required to establish liaison with telematics service providers. Before selecting an appropriate method to track information, an insurance provider needs to make several considerations. Most of the insurance providers use on-board diagnostics systems, i.e. OBDII (black boxes or dongles). However, other providers offer smartphone apps that are easier to access and economical. Comparatively very few of the insurance providers offer both the hardware and smartphone app.
Further, the smartphones segment is also expected to gain market share during the forecast period. . Smartphone apps are suitable for insurance providers that are targeting particular groups hence, acquiring niche market share. As their UBI business grows, insurance providers may invest in OBDII and offer this on a long-term basis to specific customer segments.
In the recent few years, automotive UBI market has noticed noteworthy M&A and partnership activity. Some of the significant deals include Trak Global Group's acquisition of Intelligent Mechatronic Systems Inc. in 2018 and Octo Telematics acquisition of Willis Towers Watson's DriveAbility solution and the DriveAbility Marketplace in 2017. Also, in 2018, Vodafone and Generali Spain joined forces with an aim to promote digital transformation in the telematics insurance segment. Moreover, in 2016, Intact Financial Corporation invested in Metromile, a car insurance company based in San Francisco.
This report provides a detailed study of Automotive Usage Based Insurance market trends and forecast from 2019 to 2027, which assist to identify the prevailing market opportunities. In-depth coverage of the global Retail market that includes drivers, restraints, and opportunities, helps professionals to understand the market behavior in a better way. This study further includes market share analysis in terms of type and applications. Detailed study of the strategies of key leaders, partnerships, and acquisitions in the Automotive Usage Based Insurance market is provided. Porterís Five Forces analysis examines the competitive structure of the market and assists strategists in better decision-making.
About Us: The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We are a specialist in Technology, Semiconductors, Healthcare, Manufacturing, Automotive and Defense.
We are pleased to offer you this exciting, new, and entirely free professional resource. Visit our Free Industry resource center today to browse our selection of 600+ complimentary Industry magazines, white papers, webinars, podcasts, and more. Get popular titles including: