Demand in the usage-based insurance market is driven by the expansion of the global automotive sector – InsuranceNewsNet

Global Usage-Based Insurance Market Report 2022 – Market Size, Trends and Global Forecast 2022-2026

The Business Research Company’s Global Usage-Based Insurance Market Report 2022 – Market Size, Trends and Forecast 2022-2026.

LONDON, GREATER LONDON, UNITED KINGDOM, July 29, 2022 /EINPresswire.com/ — The usage-based insurance (UBI) market consists of sales by organizations that provide auto insurance services by placing monitoring devices in the vehicle. UBI is often powered by telematics technology that is available in vehicles via a plug-in device or pre-installed in the car’s system and can also be accessed via mobile apps. It provides insurers with a variety of data to base driver premiums on, based on vehicle use or driving behavior, including how far the vehicle is driven, how it is driven and where it is driven.

Reference to the global market pattern will prove the expected rise in demand with the global usage-based insurance market expected to grow from $28.8 billion in 2021 to $37.2 billion in 2022 at a compound annual growth rate (CAGR) of 29%. The growth of the automobile industry is expected to drive the growth of the usage-based insurance market in the coming years. The automotive industry consists of a diverse group of businesses and organizations that design, develop, manufacture, market, and sell automobiles. Car owners are interested in usage-based telematics insurance because it provides low premiums for low-risk driving and high premiums for high-risk driving. As a result, the usage-based insurance market is expected to grow 110 billion dollars in 2026 at a CAGR of 31%, with further growth expected to reach 282 billion dollars in 2031 at a CAGR of 21%.

North America was the largest region in the global insurance market based on usage, accounting for 35% of the market in 2021, with Asia-Pacific region secondly and Western Europe in third place, with 27% and 26% of the market, respectively. Africa was the smallest region in the global insurance market based on usage. By individual country, USA had the largest share of the world market, amounting to about 31%, with China it follows a distant second with a 12% share. Chinahowever, it is projected to show the highest growth in the period 2021 to 2026, with a CAGR of around 43%.

The main types of insurance based on vehicle usage are for light duty vehicles (LDVs) i.e. passenger cars with a maximum gross weight of less than 6 tonnes, which accounts for 59% of the global market, and also for heavy goods vehicles (HDVs), which have a greater gross weight of more than 6 tonnes, and which account for the remaining 41% of the market. However, the HDV sector is projected to grow faster in the period 2021 to 2026 with a CAGR approaching 33% compared to 29% for LDV.

Technological advancements are shaping the usage-based insurance market, with major companies operating in the sector focusing on developing usage-based insurance technology solutions to strengthen their position in the market. Different technologies include OBD-II-based UBI programs; smartphone-based UBI programs; hybrid-based UBI programs; and black-box-based UBI programs and are used in different types of packages such as pay-as-you-drive (PAYD), pay-how-you-drive (PHYD) and manage-how-you-drive (MHYD).

Global Usage Based Insurance Market Report 2022 – By Vehicle Type ((LDV), (HDV)), By Technology (OBD-II Based UBI Programs, Smartphone Based UBI Programs, UBI Programs , Hybrid-based, Black-Box-based UBI Programs), by Package Type ((PAYD), (PHYD), (MHYD)) – Market Size, Trends and Global Forecast 2022-2026 is one of a series of new reports from The Business Research Company which provides usage-based insurance market overviews, analysis and forecasts, usage-based insurance market size, usage base, usage-based insurance market players, market segments and geographic regions based on usage, revenue, profiles and market shares of the leading competitors in the market.

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