The worldwide market for usage-bsaed insurance is expected to hit $123 billion in 2022, according to a new report by Allied Market Research.
Though European programs currently generate the most revenue, Allied says that North American programs are expected to grow at a faster rate in the next several years. Growth is expected to be highest in the manage-how-you-drive segment, which incorporates driver feedback to drive better results.
"Consistent improvements in telematics based data collection and analysis techniques have led to the growth of usage-based insurance market. Insurance companies are diversifying into the business segment in order to capitalize upon the upcoming business opportunity," says Sheetanshu Upadhayay, research analyst for Allied.
Though companies tend to prefer "black-box" programs today, because of the quality of the data, smartphone-based or hybrid approaches are expected to contribute to the boom in UBI over the next few years, according to Allied.
Register or login for access to this item and much more
All Digital Insurance content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access