Dublin, Sept. 01, 2023 (GLOBE NEWSWIRE) -- The "Insurance Telematics Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)" report has been added to ResearchAndMarkets.com's offering.
The Insurance Telematics Market size is expected to grow from USD 4.91 billion in 2023 to USD 11.02 billion by 2028, at a CAGR of 17.57% during the forecast period (2023-2028).
As part of how telematics insurance usually works, a "black box" is installed in the car. This device keeps track of things like speed, distance, and the type of route taken.
Key Highlights
Additionally, this device tracks braking behavior and driving habits, which insurance companies use to determine a fair price. Insurance telematics can improve claims, risk selection, and fraud detection while changing the current motor insurance landscape.
Telematics can be understood as a combination of informatics and telecommunication. Telematics is helpful in the auto insurance sector for tracking, storing, and transferring driving-related data.
This data is beneficial for understanding driving behavior and setting reasonable auto insurance prices. Consumers enjoy real-time services like crash assistance. These services support the growth of bold claims services and assist insurers in driving digital use.
The usage of cloud services in insurance telematics is being driven by the Internet of Things (IoT) integration in passenger and commercial vehicles. For instance, a parent can monitor their kids' driving behaviors. Cloud services may be incorporated into the customer experience with third-party applications, fueling the market's expansion throughout the forecasted period.
Usage-based insurance (UBI) is widely available for vehicles in developed countries, which is a driving factor for the insurance telematics market. In this UBI, the payable premium for the policy is directly linked with the insured product or service usage.
For consumers, it will promote safe driving, resulting in the mitigation of accident severity and frequency. For the insurers, the claim-handling cost will be reduced by 55%, likely driving market growth over the forecast period.
Insurance Telematics Market Trends
Increasing Adoption of Usage-based Insurance
Usage-based insurance calculates the insurance premium depending on the driver's behavior rather than a fixed amount like conventional car insurance. The distance traveled and driving behavior are two important factors in determining the cost of car insurance.
The insurer uses data such as driving speed, acceleration rate, braking pattern, and whether you use the phone while driving to calculate insurance premiums.
As the total cost of ownership for insurance telematics has decreased significantly over the last ten years and regulatory developments have enabled UBI, insurers worldwide have focused on telematics as the future of developing deeper client relationships. The main driving forces behind usage-based insurance are new data collection techniques, the development of embedded telematics solutions, the emergence of a new insurance ecosystem, a decline in accidents, and vehicle theft recovery capabilities, including those offered by mobile and hybrid solutions. These elements denote a shift in the market and are crucial for implementing UBI.
According to a US auto insurance study conducted between January and April 2022, usage-based automobile insurance programmes have seen a dramatic increase that could save up to 30% on the insurance premium, depending on the operator or provider. However, the most significant fall in customer satisfaction is due to price increases.
This negative satisfaction can be decreased by proactively informing customers ahead of time if the price increases.
The rising incorporation of the Internet of Things (IoT) into passenger and commercial vehicles is propelling the utilization of UBI along with cloud services in insurance telematics. The cloud makes it possible to access numerous device-related data sets when traveling. For instance, a parent can monitor their children's driving behavior.
Furthermore, cloud services can be connected through third-party applications, enabling an enhanced customer experience and propelling market growth over the forecast period.
Europe Enjoys a Dominant Position in the Insurance Telematics Market
The European insurance telematics market is primarily dominated by hardwired aftermarket black boxes, while self-install OBD devices represent the vast majority of active policies in Europe. However, several European insurers have recently shifted to solutions based on smartphones. The Italian insurers UnipolSai and Generali together accounted for over 50 percent of the telematics-enabled policies in Europe. Similarly, Admiral Group and Direct Line have strong adoption rates in the UK.
Insurance Telematics Industry Overview
The insurance telematics market consists of several major players. In terms of market share, only some of the market players currently have significant dominance in the market. The major players with a prominent market share are expanding their customer base across foreign countries to stay on top.
A selection of companies mentioned in this report includes
- Towergate Insurance
- Unipolsai Assicurazioni SpA
- Octo Telematics SpA
- DriveQuant
- Imertik Global Inc
- Axa SA
- The Floow Limited
- LexisNexis Risks Solutions
- Vodafone Automotive SpA
- Viasat Group
- Cambridge Mobile Telematics
- AllState Insurance Co.
For more information about this report visit https://www.researchandmarkets.com/r/tcji1n
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