Global Insurance Telematics Market 2021-2026

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    GLOBAL INSURANCE TELEMATICS MARKET

     

    KEY FINDINGS

    • The key drivers supporting the initiative for insurance telematics are decreasing the cost of development and technology, altering consumer behavior, and stringent government regulations.
    • The telematics market for industries such as insurance is anticipated to grow steadily in the next few years, due to decreasing cost of connectivity solutions, such as wireless and cellular modules and use of predictive analysis, enabling the end user to produce drive risk scores from telematics data.
    • The rising incorporation of the internet of things (IoT) into passenger and commercial vehicles is propelling the utilization of cloud services in insurance telematics. Cloud enables the tapping of various data related to the device on the go. For instance, a parent can monitor their children’s driving behavior.
    • The European insurance telematics market is largely dominated by hardwired aftermarket black boxes, while self-install OBD devices represent the vast majority of the active policies in North America.
    • Educating consumers about insurance telematics and security issues associated with cloud and mobile technologies act as challenges for the market. However, the privacy concerns associated with private data of individuals and customers are restraining the growth of the market.
    • The Insurance Telematics market is expected to grow at a CAGR of XX% over the forecast period (2021 – 2026).

     

    INTRODUCTION

    Telematics insurance usually works by setting up in the vehicle a device, termed usually as a Black Box, which records different metrics of the latter, such as speed, distance, and the type of road one travels. This device also monitors the braking pattern and driving style, which is utilized by insurance companies to compute the premium accordingly.

     

    infographic: Insurance Telematics Market, Insurance Telematics Market Size, Insurance Telematics Market Trends, Insurance Telematics Market Forecast, Insurance Telematics Market Risks, Insurance Telematics Market Report, Insurance Telematics Market Share

     

    Insurance telematics poses the potential to alter the current scenario of motor insurance and positively impact claims, risk selection, and fraud detection. As of now, the industry is still at a nascent stage of development, and various studies are being conducted by researchers to explore the broadening of its usage across the world.

     

    GLOBAL INSURANCE TELEMATICS MARKET SEGMENTATION

     

    By Organization Size

    • Small and Medium Enterprises (SMEs)
    • Large Enterprises

     

    By Deployment Type

    • On-Premise
    • Cloud

     

    By Vehicle Type

    • Passenger Vehicles
    • Commercial Vehicles

     

    By Geography

    • US
    • Europe
    • China
    • Asia (ex China)
    • ROW

     

    GLOBAL INSURANCE TELEMATICS MARKET DYNAMICS

    • The key drivers supporting the initiative for insurance telematics are decreasing the cost of development and technology, altering consumer behavior, and stringent government regulations.
    • The demand for telematics varies across the world, owing to which the industry players are performing pilot projects to understand customer behavior.
      • For instance, in the United States, consumers prefer usage-based insurance (UBI) snapshot programs, whereas, in the United Kingdom, there are only 2-3% of motor insurance telematics policies.
      • The introduction of insurance telematics has several advantages to the insurer, as well as consumers, which are expected to fuel market growth.
    • 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%, which is likely to drive the market growth over the forecast period.

     

    GLOBAL INSURANCE TELEMATICS MARKET SIZE AND FORECAST

    The telematics market for industries such as insurance is anticipated to grow steadily in the next few years, due to decreasing cost of connectivity solutions, such as wireless and cellular modules and use of predictive analysis, enabling the end user to produce drive risk scores from telematics data. Consumer’s enthusiasm for in-car connectivity and growth of smartphone penetration are driving the market.

     

    In terms of deployment type, on-premises deployment is expected to dominate the market with the largest market size.

     

    In terms of end users, SMEs are estimated to exhibit the highest growth rate as they are adopting cloud-based insurance telematics solutions extensively.

     

    US is expected to lead the overall market followed by Europe and China. US is rapidly deploying insurance telematics solutions due to the dynamic market environment. Latin America and APAC is also witnessing a record growth in demonstrating and adopting insurance telematics solutions.

     

    Educating consumers about insurance telematics and security issues associated with cloud and mobile technologies act as challenges for the market. However, the privacy concerns associated with private data of individuals and customers are restraining the growth of the market.

     

    Organic growth through partnerships, agreements and collaborations are the key strategies followed by the companies, such as Octo Telematics, Sierra Wireless, Inc., Agero Inc., Telogis, and TomTom Telematics. These strategies accounted for a share of 38% of the total strategic developments in the insurance telematics market.

     

    Mergers and acquisitions strategy accounted for 15% of the total strategic developments incorporated by the top insurance telematics companies, such as Sierra Wireless, MiX Telematics, Telogis, and Trimble Navigation.

     

    RECENT TRENDS IN THE MARKET

    • The rising incorporation of the internet of things (IoT) into passenger and commercial vehicles is propelling the utilization of cloud services in insurance telematics. Cloud enables the tapping of various data related to the device on the go. For instance, a parent can monitor their children’s driving behavior. Furthermore, cloud services can be connected through third-party applications, enabling enhanced customer experience, which is propelling the market growth over the forecast period.
    • Additionally, it empowers live sharing of data with the concerned person, which is likely to boost the segment’s growth. Incorporating cloud through insurance telematics also offers insights and risks associated with the driver’s driving style, which helps in keeping track of the car’s running activity.
    • In addition, it reduces the extra cost related to data storage, which, compared to on-premise, is expected to fuel the adoption of cloud-based service, thereby, propelling the segment’s growth over the forecast period.
    • The European insurance telematics market is largely dominated by hardwired aftermarket black boxes, while self-install OBD devices represent the vast majority of the active policies in North America. However, several major US insurers have recently shifted to solutions based on smartphones.
    • The Italian insurers, UnipolSai and Generali, together accounted for around 50% of the telematics-enabled policies in Europe. Moreover, insurers with a strong adoption of telematics-enabled policies in the United Kingdom include Admiral Group, Insure, The Box, and Direct Line. Several insurers in the rest of Europe have also shown a substantial uptake of telematics in 2016-2017.
    • Consumer engagement is now the focus of most insurance telematics programs and will continue to be an important topic in the near term in Europe. The European insurance telematics market is still controlled and dominated by insurers in Italy and the United Kingdom, with an estimated 4.3 million and 540,000 policies, respectively. Uptake on all other markets is considerably lesser, with between 50,000 and 100,000 policies in Spain, Austria, and France, and between 10,000 to 20,000 policies in Benelux, Switzerland, Scandinavia, and Germany.
    • Cambridge Mobile Telematics has acquired rival TrueMotion for an undisclosed price in a deal that gives it an expanded presence and capabilities in the global auto insurance market.
    • Just Insure, a pay-per-mile insurance technology company that uses telematics to reward safe drivers and reduce insurer bias, announced it has raised $8 million, bringing its total funding amount to $15 million.
    • The new funds will be used to scale the company and its product offering as it looks to expand into additional states. This funding round was led by CrossCut Ventures, ManchesterStory and Western Technology Investments.
    • Koop Technologies, an insurance technology startup specializing in autonomous vehicle and robotics risk, recently announced $2.5M in seed funding. The round was led by Ubiquity Ventures, along with Bee Partners, Sure Ventures, WestWave Capital, and a number of strategic angel investors. Founded in 2020, Koop is based in Pittsburgh, as three of its four co-founders attended the University of Pittsburgh.

     

    COVID IMPACT ON GLOBAL INSURANCE TELEMATICS  MARKET

    The COVID-19 pandemic has resulted in changing demands of insurers from traditional actuarial and underwriting models to pay-as-you-drive (PAYD) models. In addition, increased acceptance of digital tools in the policy binding & claims process among consumers, combined with a need for insurers to design premium policies more precisely are major factors notably contributing towards the market growth.

     

     

    COMPETITIVE LANDSCAPE

    The insurance telematics market consists of several major players. In terms of market share, almost none of the market players currently have significant dominance in the market. The major players with the prominent share in the market are focusing on expanding their customer base across foreign countries to stay on the top.

     

    Dublin-based RentalMatics, which provides telematics to the car hire sector, has entered a three-year agreement with Queensland-based East Coast Car Rentals as it launches its connected car platform in the Australian market. These companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability.

     

    The companies operating in the market are also acquiring start-ups working on insurance telematics market technologies to strengthen their product capabilities.

     

    COMPANY PROFILES

    1. Octo Telematics
    2. Sierra Wireless, Inc
    3. Agero Inc
    4. Telogis
    5. TomTom Telematics
    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2021-2026
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2021-2026
    19 Market Segmentation, Dynamics and Forecast by Application, 2021-2026
    20 Market Segmentation, Dynamics and Forecast by End use, 2021-2026
    21 Product installation rate by OEM, 2021
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2021
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix

     

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