Dublin, April 1, 2021 (GLOBE NEWSWIRE) – The Insurance Telematics Market – Growth, Trends, COVID-19 Impact, and Forecasts (2021 – 2026) report has been added to From ResearchAndMarkets.com to offer.
The insurance telematics market is expected to grow at a CAGR of 18.5% over the forecast period (2021 – 2026). Telematics insurance usually works by setting up in the vehicle a device, usually called a Black Box, that records various statistics of the latter such as speed, distance and the type of road being traveled.
This device also monitors braking pattern and driving style, which is used by insurance companies to calculate premium accordingly. Insurance telematics has the potential to change the current car insurance scenario and positively impact claims, risk selection and fraud detection. At present, the industry is still in a nascent stage of development and several studies are being conducted by researchers to explore the broadening of its use around the world.
The main drivers behind the insurance telematics initiative are lowering the costs of development and technology, changing consumer behavior and strict government regulations. Demand for telematics varies around the world, leading the industry players to conduct pilot projects to understand customer behavior.
For example, in the United States, consumers prefer a usage-based insurance (UBI) snapshot program, while in the United Kingdom, only 2-3% of auto insurance telematics policies exist. The introduction of insurance telematics has several benefits for the insurer and for consumers, which are expected to drive market growth.
For consumers, it promotes safe driving, resulting in a reduction in the severity and frequency of accidents. For insurers, claims handling costs will be cut by 55%, which is likely to drive market growth over the forecast period.
Main market trends
Cloud deployment for insurance telematics enables better data and device management
The increasing integration of the Internet of Things (IoT) in passenger and commercial vehicles is driving the use of cloud services in insurance telematics. Cloud makes it possible to tap various data related to the device while on the go. For example, a parent can monitor the driving behavior of their children. In addition, cloud services can be connected through third-party applications, enabling an improved customer experience, driving market growth during the forecast period.
In addition, it allows to share data live with the affected person, which is likely to drive the growth of the segment. Integrating cloud through insurance telematics also provides insights and risks related to the driver’s driving style, which helps keep track of the car’s running activity.
In addition, it reduces the additional costs associated with data storage, which, compared to on-premise, is expected to drive adoption of cloud-based service, driving segment growth over the forecast period.
Europe has a dominant position in the insurance telematics market
The European insurance telematics market is largely dominated by hardwired aftermarket black boxes, while self-installed OBD devices represent the vast majority of active policies in North America. However, some major US insurers have recently switched to smartphone-based solutions.
Italian insurers UnipolSai and Generali together accounted for about 50% of telematics-based policies in Europe. In addition, insurers with strong adoption of telematics-based policies in the UK include Admiral Group, Insure, The Box and Direct Line. Several insurers in the rest of Europe also showed substantial uptake of telematics in 2016-2017.
Consumer engagement is now the focus of most insurance telematics programs and will remain a major topic in Europe in the near term. The European insurance telematics market is still dominated and dominated by insurers in Italy and the United Kingdom, with an estimated 4.3 million and 540,000 policies respectively. Take-up in all other markets is significantly lower, with between 50,000 and 100,000 policies in Spain, Austria and France, and between 10,000 and 20,000 policies in the Benelux, Switzerland, Scandinavia and Germany.
1.1 Research results
1.2 Research Assumptions
1.3 Scope of the investigation
3 RESEARCH METHODOLOGY
4 MARKET DYNAMICS
4.1 Market overview
4.2 Introduction to market factors and constraints
4.3 Market factors
4.3.1 Improving smartphone penetration
4.3.2 Increasing applications of the Internet of Things (IoT) and machine learning
4.4 Market Restrictions
4.4.1 Lack of awareness of advanced technologies
4.5 Attractiveness of the Industry – Porter’s Five Forces Analysis
4.6 Technology Snapshot
5 MARKET SEGMENTATION
5.1 By Deployment Mode
5.2 By Bidding
5.3 By type
5.3.1 Pay per trip
5.3.2 Pay for how you drive
5.4 By end user Vertical
5.4.1 Passenger vehicle
5.4.2 Commercial vehicle
5.5.1 North America
5.5.4 Latin America
5.5.5 Middle East and Africa
6 COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Agero Inc.
6.1.2 Aplicom Oy
6.1.3 Masternaut Ltd
6.1.4 MiX Telematics Ltd
6.1.5 Octo Telematics SpA
6.1.6 Sierra Wireless Inc.
6.1.7 Telogis Inc.
6.1.8 TomTom Telematics BV
6.1.9 Trimble Inc.
6.1.10 Verizon Enterprise Solutions Inc.
6.1.11 Meta System SpA
6.1.12 Intelligent mechatronic systems
7 INVESTMENT ANALYSIS
8 MARKET OPPORTUNITIES AND FUTURE TRENDS
For more information on this report, visit https://www.researchandmarkets.com/r/e5nw20
CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager email@example.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900