Usage-Based Insurance Market – Overview
Usage-based insurance market is a new type of insurance cover granted by the auto-insurers where the premium is gauged upon driving habits, odometer readings, driving routes and other ride associated parameters tracked through a telecommunication device.
Insurance companies can effectively underwrite the risk by tracking consumer driving patterns and thus is a major driving factor for the usage-based insurance. Insureds who drive less miles and opt for routes with low accidental rates have low risk of accident claims maximize the profit margin for insurer providers. The usage-based insurance offers variable premium and offer incentives to consumers who do not claim. Feasibility of low premium offering is increasing its preference among the consumers and is a major driver for the usage-based insurance market. Advancement in vehicle telematics has enabled the insurers to track the vehicle driving and derive the premium accurately thus improving adoption of own damage insurance and boosting the usage-based insurance market. Telematics used for usage-based insurance also determines efficient routes thus help saving fuel and reducing pollution. Rising confidence among consumers is also playing a vital role in improving market penetration of usage-based insurance. The usage-based insurance adds safety benefits as the accident response time is minimized due to vehicle tracking. The “No-Claim” benefits encourages the consumers to drive safely thus minimizing accidental risks and benefiting insurers. The usage-based insurance is a win-win product for both insurer and insured and is thus expected to witness high demand during the period.
Brochure With Latest Advancements and Application @ https://www.transparencymarketresearch.com/sample/sample.php?flag=B&rep_id=52104
As usage-based insurance tracks the vehicle it is facing privacy concerns acting as a restraining factor for the market. The insurers also has to follow strict data compliance with risk of data hacking raising the market challenge.
Usage-Based Insurance Market – Segmentation
The global usage-based insurance market can be classified according to service type, technology type, and region. By service type, the usage-based insurance market is segmented under pay-as-you-drive, pay-how-you-drive, and manage-how-you-drive. The pay-as-you-drive type insurance offers discount on miles driven by tracking odometer reading or telecommunication device on board. The pay-as-you-drive contributes to high market share due to its cost effectiveness. The manage-how-you-drive is expected to witness higher growth during the period with advancement in data analytics and its customer flexible approach.
By technology, the usage-based insurance market is segmented under smartphone, OBD-II, hybrid, and black box segment. Dependence on smartphone apps is expected to rise in future with smartphone applications being convenient option eliminating the use of additional dedicated device in the vehicle.
By region, the usage-based insurance market is segmented under North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Europe contributed to highest market share of the usage-based insurance market. High level of consumer awareness regarding usage based insurance in the region has led to the high market demand in the region.
Download Report TOC for in-depth analysis @ https://www.transparencymarketresearch.com/sample/sample.php?flag=T&rep_id=52104
Usage-Based Insurance Market – Key Players
Key players operating in the region are AXA S.A., Insure The Box Ltd., Allstate Corporation, Generali group, Alliance SE, Metromile, and Aviva plc.