Oct 25, 2023

News provided by Share this article Share toX DUBLIN, Oct. 25, 2023 /PRNewswire/ -- The "Insurance Telematics in Europe and North America - 7th Edition" report has been added to  ResearchAndMarkets.com's offering. This comprehensive study offers detailed insights into the evolving world of insurance telematics, revealing compelling growth figures and forecast trends until 2027. Insurance telematics, commonly known as usage-based insurance (UBI), is transforming the automotive insurance landscape. Telematics, a blend of "telecommunications" and "informatics", involves collecting vehicle-related data via telecommunication networks. This breakthrough allows insurers to formulate pricing strategies based on real-time driving behavior, manage claims more efficiently, and uniquely position their offerings to consumers. Popularized models include Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD). Market Potential: The addressable market is enormous. In 2019, 317 million vehicles were in circulation in the EU22+3, with North America boasting approximately 293 million vehicles. Given that basic automotive insurance is compulsory in most developed regions, the potential for insurance telematics is vast. In 2019 alone, motor gross written premiums in EU22+3 were over €142.3 billion, with North America recording US$253.2 billion. Growth Trends: Europe and North America are currently the epicenters of the insurance telematics revolution. By the end of 2020, Europe had approximately 13.1 million insurance telematics policies. Forecasted figures suggest a rise to 35.1 million policies by 2025, growing at a CAGR of 21.7%. North America is projected to escalate from 16.7 million policies in 2020 to 49.0 million by 2025, marking a CAGR of 24.0%. Latest data indicates 13.6 million active policies in Europe by the close of 2022, with a projection of 20.7 million by 2027. North America is poised to grow from 16.8 million in 2022 to 29.2 million policies by 2027. Key Players & Technology: Major insurers include Progressive, UnipolSai, State Farm, Allstate, and Generali, among others. Several insurers are leveraging smartphone solutions to either complement or replace traditional OBD dongles. For instance, top US insurers have transitioned to smartphone-based solutions. Smartphone telematics has captured significant market share in recent years, with leading vendors including Cambridge Mobile Telematics and Arity. Other noteworthy players include Octo Telematics, Vodafone Automotive, and Viasat Group. Future Outlook: The integration of telematics within OEMs is evident. Brands like General Motors, Ford, Tesla, and BMW are entering the ecosystem, leveraging connected car applications. The aftermarket segment also remains crucial, with Octo Telematics being a dominant force, supporting over 5.7 million insurance telematics programs. Smartphone-based solutions are maturing, offering advantages in claims handling and marketing. Cambridge Mobile Telematics, for example, powers over 10 million policies, predominantly in the US. Report Highlights: Comprehensive analysis of the insurance telematics value chain and key applications. Detailed market trends and developments. Case studies from 63 insurance telematics programs. Insights into the roles of vehicle OEMs and mobile operators. Data on vehicle populations across Europe and North America. Country-specific market forecasts until 2027. The " Insurance Telematics in Europe and North America " report offers answers to burning questions about the market, from types of products available, leading providers, technology trends, to the involvement of vehicle OEMs and mobile operators. Companies Profiled: IMS