As per a report by TechSci Research titled "Global Usage-Based Insurance Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028," the market reached USD 25.21 billion in 2022 and is expected to register a 26.32% Compound Annual Growth Rate (CAGR) from 2024 to 2028. 

This insurance model employs telematics technology to monitor and evaluate the real-time behavior of policyholders, providing personalized premiums based on driving habits for safer and more responsible driving. Despite challenges related to privacy and data accuracy, the global adoption of Usage-Based Insurance (UBI) is increasing, transforming the insurance landscape with more customized and data-driven solutions.

Techsci Research Report: https://www.techsciresearch.com/report/usage-based-insurance-market/19491.html 

Key to global UBI is the use of telematics devices or smartphone apps to collect comprehensive driving data, enabling insurers to precisely assess risks and calculate premiums based on factors such as speed, braking, and location. Safer drivers are rewarded with lower premiums, creating incentives for improved driving behaviors. The growth of UBI is fueled by technological advancements, increased accessibility of smartphones, and widespread use of in-vehicle telematics systems, facilitating cost-effective data collection and processing. Additionally, changing consumer expectations for personalized, on-demand services contribute to the attractiveness of UBI, allowing policyholders to directly influence their premiums through responsible driving habits.

Request a Free PDF Sample Report Now

Government support and regulatory incentives further drive UBI's global growth, with policies promoting road safety, emissions reduction, and traffic congestion alleviation. Initiatives include tax incentives, reduced registration fees for telematics-equipped vehicles, and mandates for insurance companies to offer UBI options. The market is segmented based on vehicle type, vehicle age, policy type, regional distribution, and company.

Major companies operating in the Global Usage-Based Insurance Market are:

  • Cambridge Mobile Telematics

  • Progressive Casualty Insurance Company

  • Inseego Corp.

  • The Floow Limited

  • Assicurazioni Generali S.p.A

  • Equitable Holdings, Inc.

  • The Modus Group, LLC

  • Octo Group S.p.A

  • TomTom International BV.

  • Allianz Partners 

Download Free Sample Report: https://www.techsciresearch.com/sample-report.aspx?cid=19491 

Customers can also request 10% free customization on this report.

Despite its growth and benefits, UBI faces challenges such as data privacy and security concerns. To address these, insurers need to invest in robust data encryption, secure storage, and transparent data usage policies to build trust with policyholders. The market is segmented by policy type into Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD) insurance. PAYD insurance emerges as the fastest-growing segment due to its flexibility and cost-effectiveness, appealing to environmentally conscious consumers and those seeking lower insurance costs based on mileage. 

According to Mr. Karan Chechi, Research Director at TechSci Research, UBI is a dynamic and transformative trend in the insurance industry, leveraging technology for personalized and risk-adjusted premiums. The approach encourages safer driving practices and cost-saving opportunities. Key drivers of UBI include technological advancements, expanded applications beyond auto insurance, integration with autonomous and electric vehicles, and a focus on behavioral analytics and personalization. Challenges include privacy concerns, equity issues, data accuracy, and regulatory compliance. Nevertheless, UBI continues to gain momentum, offering a glimpse into the future of more precise, customer-centric, and data-informed insurance solutions worldwide.

Request a Free PDF Sample Report Now

About Us

TechSci Research is a research-based management consulting firm providing market research and advisory solutions to its customers worldwide, spanning a range of industries. TechSci Research's core values are value, integrity, and insight. Led by a team of dynamic industry experts, TechSci Research provides its customers with high-value market research and advisory services that help them identify new market opportunities, growth engines, and innovative ways to capture the market share. As a result, TechSci's client leads rather than follow market trends.

Contact Us

TechSci Research LLC

420 Lexington Avenue, Suite 300,

New York, United States - 10170

M: +13322586602

Email: sales@techsciresearch.com

Website: www.techsciresearch.com