Dublin, April 01, 2021 (GLOBE NEWSWIRE) -- The "Insurance Telematics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
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, 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. 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.
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 program, 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.
Key Market Trends
Insurance Telematics Cloud Deployment Enables Better Data and Device Management
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.
Europe Enjoys a Dominant Position in the Insurance Telematics Market
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.
Key Topics Covered:
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2 EXECUTIVE SUMMARY
3 RESEARCH METHODOLOGY
4 MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Increasing Smartphone Penetration
4.3.2 Increasing Applications of Internet of Things (IoT) and Machine Learning
4.4 Market Restraints
4.4.1 Lack of Awareness about Advanced Technologies
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.6 Technology Snapshot
5 MARKET SEGMENTATION
5.1 By Deployment Mode
5.2 By Offering
5.3 By Type
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 & 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 about this report visit https://www.researchandmarkets.com/r/e5nw20
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