Usage-based Insurance Market, Trends & Analysis – Forecasts To 2025

1. GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS Ankita Roy, Treesha Banerjee and Liza D’souza from Global Market Estimates throw the spotlight on the growing Usage-based InsuranceMarket. Usage-based Insurance MarketInsights The Usage-based Insurance Market is expected to grow at a significant CAGR during the forecast period. There are various factors driving the usage-based insurance market, some of them being decreased accident rates and vehicle theft possibilities, flexible insurance premium, lower fuel consumption, and timely and accurate datacollection. The usage-based insurance system is also known as a telematics-based insurance system, which provides premium based on the driving behavior of the consumers. The premiums are charged basedonwhattypeofroads areused,brakingandcorneringpatternsusedbythe consumer. The factors boosting the market growth are lower chances of incurring accidents and vehicle theft as the driving behavior of consumers are being monitored by the insurance companies. Another factor expected to boost market growth could be technological advancements in smart vehicles. Hybrid technology-based solutions and smartphones play a very important role in driving the market growth. The usage-based insurance market is being used to avoid the manipulation and forging of driving data such as speed, braking, corner cutting and time during an accident. The data helps insurance companies to analyze and provide customized user-based insurance products based on thescenario. High technologicalprocess and an increaseinthecostofinstallationaresomefactorslikelytohinder growth in the usage-based insurance market. The increase of the operating expense of the user basedinsurancecouldactasabarriertothegrowthofthemarketaswell. ©COPYRIGHT 2017 GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS

2. GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS Usage-based Insurance Market: ByType The usage-based insurance system can be segmented into four types; Pay-As-You-Drive (PAYD), Pay- How-You-Drive (PHYD), Manage-How-You-Drive (MHYD) and Distance-Based insurance. PAYD has been popular and most used insurance system is among the North Americandrivers. The manage-how-you-drive segment is expected to grow at a faster rate over the forecast period, owing to its feature of high flexibility and freedom to the customers. MHYD segment provides allthe informationtothe consumersincludingtheirfuelconsumptionrateandothers. Usage-based Insurance Market: By TelematicsSolutions The Usage-based Insurance Market can be segmented based on the Telematics solution into the dongle, black box, embedded and smartphones. It is anticipated that the growing use of these technologies will drive the market during the forecast period. The black box technology is expected to contribute most to the revenue share in the telematics solutions. Whereas, increased use of smartphone technology is expected to register the highest CAGR during the forecastperiod. Usage-based Insurance Market: By premiumcollection The market for usage-based insurance can be segmented based on the premium collection intodebit account, direct billing, and smart card systems. The debit account is expected to hold the largest market share in this segment. The actuaries of the insurance companies are trusted with the responsibilityofchargingthecorrectpremiumfromtheconsumers. With the advancement of technology, the market share of smart card system is expected to register the highest CAGR during the forecastperiod. ©COPYRIGHT 2017 GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS

3. GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS Usage-based Insurance Market: RegionalInsights Europe is expected to dominate the market of the telematics system, with Italy contributing its majority share. The region’s dominance can be attributed to the various factors one of them being well-developed infrastructure and also due to the presence of well-established and sustainable economies in the region. North America has the second highest market of usage based insurance system, with U.S contributing its majority share. Technological advancements, awareness about safety precautions and high adoption rate of smart technologies are some factors expected to positivelyimpactthemarketforusage basedinsurance overtheworld. Usage-based Insurance Market: End-UseLandscape The end-use landscape entails a list of current and prospective consumers prevailing across the regions. This section provides company addresses, contact details, products, and regional presence of companies who are purchasing or are likely to purchase usage based insurance over the coming years. Some companies likely to purchase usage-based insurance in the coming years are Liberty Mutual, Nationwide and Allstate amongothers. Usage-based Insurance Market: VendorLandscape The report contains a chapter dedicated to vendors operating in the market, covering raw material manufactures, equipment developers, manufacturers, and distributors. The report provides these insights on a regional level. This section of the report entails contact details, experience, products manufactured/supplied, and geographical presence ofcompanies. ©COPYRIGHT 2017 GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS

4. GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS • Usage-based Insurance Market: Share &Competitor Analysis • Some of the key players operating in the Usage-based Insurance Market are AXA S.A., Insure The Box Ltd., Allianz SE, Allstate Corporation, Generali Group, Metromile, Aviva plc, Desjardins Insurance, Progressive Corporation, Admiral Group Plc., AI Insurance Holdings Pty Ltd. Box Innovation Group Ltd. andothers. • According to a report, it was estimated that the US household share in user based insurance policies has increased to 20% in2016. • In the year 2016, Progressive Insurance signed a partnership agreement with an U.S. based telematics solutions providerZubie. • The reportsegmentstheUsage-basedInsuranceMarketonthebasisof: ByType • Pay-As-You-Drive(PAYD) • Pay-How-You-Drive(PHYD) • Manage-How-You-Drive(MHYD) • Distance-Based Insurance • By TelematicsSolutions • Dongle • BlackBox • Embedded • Smartphones • By Method of PremiumCollection • DebitAccounts • DirectBilling • Smart CardSystems ©COPYRIGHT 2017 GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS

5. GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS • ByRegion: • NorthAmerica • Europe • AsiaPacific • Central & SouthAmerica • Middle East &Africa * This article contains text from the ‘Usage-based Insurance Market– Forecast to 2025’ report For moreinformationortobuythereport,please visit:https://www.globalmarketestimates.com/usage-based-insurance-market/ *Checkourannualresearchpartnershipserviceat: https://www.globalmarketestimates.com/annual-research-partnership-services/ ©COPYRIGHT 2017 GLOBAL MARKET ESTIMATES RESEARCH &CONSULTANTS