automotive usage based insurance Market

The automotive usage based insurance market remains a relative niche market; however, it is currently witnessing strong growth. The automotive usage based insurance market value chain includes multiple industries. UnipolSai, Progressive, State Farm, Generali, Allstate, Intact, Allianz, and Insure are among the automotive usage based insurance providers with a remarkable presence in the market. The automotive usage based insurance market players can either develop their telematics programs or depend on partners to varying degrees.  Vodafone Automotive, Octo Telematics, LexisNexis Risk Solutions, Cambridge Mobile Telematics, Intelligent Mechatronic Systems, Baseline Telematics, The Floow, Modus, and DriveFactor are among the prominent telematics providers in the UBI field. Moreover, automotive OEMs are gradually taking a vigorous part in the ecosystem. These OEMs include General Motors, Renault-Nissan, Daimler, Ford, BMW, and Fiat. Additionally, mobile operators such as Telefónica, Vodafone, Verizon, and Sprint are also providing insurance telematics solutions by working together with telematics partners.

In the recent years, automotive usage based insurance market has noticed noteworthy M&A and partnership activity. Some of the significant deals include Trak Global Group's acquisition of Intelligent Mechatronic Systems Inc. in 2018 and Octo Telematics acquisition of Willis Towers Watson's DriveAbility solution and the DriveAbility Marketplace in 2017. Also, in 2018, Vodafone and Generali Spain joined forces with an aim to promote digital transformation in the telematics insurance segment. Moreover, in 2016, Intact Financial Corporation invested in Metromile, a car insurance company based in San Francisco.

The global automotive usage based insurance market is segmented on the basis of technology fitted and policy type. Based on technology fitted, the market is segmented into smartphones, black box, dongles, and others. Based on the policy type, the market is segmented as pay-as-you-drive and pay-how-you-drive. Allstate Insurance Company; AXA SA; Allianz SE; Metromile, Inc.; Ingenie Services Limited; Liberty Mutual Insurance Company; Octo Telematics S.p.A; Sierra Wireless, Inc.; TomTom Telematics BV; and Vodafone Automotive are among the key players operating in the global automotive usage based insurance market, which are profiled in this market study.

The global automotive usage based insurance market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the automotive usage based insurance market with respect to all the segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants typically involved in this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the automotive usage based insurance market.