Artificial Intelligence Paving Way for Implementing Advanced Usage Insurance Services – Fact.MR Survey
The latest market analysis published by Fact.MR estimates that the overall usage insurance market will reach US$ 150 Bn by 2031, expanding at a whopping CAGR exceeding 17% across the forecast period. Increased demand for paying optimum insurance rates based on actual usage is spurring sales to a very large extent.
According to the historical performance of the market, usage insurance uptake registered an impressive 10% CAGR to be valued at US$ 30 Bn from as of 2020. Prospects took a temporary dip in the first half of 2020, as the COVID-19 pandemic halted automotive manufacturing and distribution operations. Fortunately, the ever surging EV popularity sustained demand.
In the long-run, usage insurance providers are looking to leverage telematics as an effective technology to offer their services. Telematics-based insurance is highly accurate, as driving data can be instantly collected, enabling insurance providers to provide feedback regarding on-road driver and vehicular performance. Several developments are being witnessed, such as the recent takeover of TrueMotion by Cambridge Mobile Telematics in June 2021. After combining, Cambridge Mobile is to provide telematics services to 21 of the 25 largest auto insurers in the U.S.
Key Takeaways from the Market Study
- Global usage insurance market to surge 5x until 2031 as compared to 2021
- Demand for pay-as-you-drive (PAYD) to account for 55% of global market revenue
- Smartphone-based usage insurance likely to expand at a CAGR of 9% through 2031
- By vehicle, commercial usage insurance to garner significant momentum, growing at 7% CAGR
- U.S to capture half of the global usage insurance demand across the decade
- Europe likely to register an expansion rate of 10% in value CAGR terms through 2031
- Asia to account for a growth rate of a staggering 15% from 2021 to 2031
“A variety of benefits can be derived from usage-based insurance and telematics, including reverse gear indicator, speed threshold tracking, seat belt usage, harsh braking, acceleration control, and voice guidance. All of these benefits contribute to the reduction of road accidents,” says Fact.MR analyst.
Strategic collaborations enable insurance industries to increase revenue and market share. New products and technologies will enable the growth of usage-based insurance in the insurance industry.
- To accelerate expansion across Europe, insurance tech company bolttech acquired i-surance, a next-generation B2B2C digital insurance platform. Boltech now covers 26 countries across North America, Asia, and Europe following the acquisition of i-surance – including Switzerland, Belgium, Germany, France, Liechtenstein, Monaco, Luxembourg, Netherlands, Portugal, Poland, Spain, and the United Kingdom.
- Bolttech intends to expand its insurance exchange services in Europe to provide both partners and customers with more choices.