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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.

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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

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.

Competitive Landscape

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.

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