Asia-Pacific usage-based insurance market set for explosive growth
Asia-Pacific usage-based insurance market set for explosive growth | Insurance Business Asia
Insurance News
Asia-Pacific usage-based insurance market set for explosive growth
Market expected to reach massive total by 2030
Insurance News
By
Roxanne Libatique
The usage-based insurance (UBI) market in the Asia-Pacific region is forecast to grow significantly, reaching $64.29 billion by 2030, according to Allied Market Research (AMR).
Key factors driving this market expansion include the rising adoption of advanced UBI technologies, such as smartphone-based and hybrid UBI systems, and increasing global concerns over driver safety.
However, the market faces challenges due to the high costs associated with telematics installation and concerns over data security.
COVID-19’s impact on Asia’s usage-based insurance market
According to AMR, the COVID-19 pandemic has positively influenced the Asia-Pacific UBI market.
Restrictions and social distancing measures led to a decline in the use of public transportation, which in turn reduced car insurance claims and boosted the UBI market.
Growth of Asia’s usage-based insurance market
The Asia-Pacific UBI market is segmented by type, technology, vehicle age, vehicle type, and region.
Technology: The black-box segment dominated the market in 2020, with more than three-fifths of the market share. The smartphone segment is expected to grow at the highest CAGR of 30.1% over the forecast period.
Vehicle age: New vehicles accounted for nearly three-fifths of the market share in 2020. The segment for used vehicles is projected to exhibit the fastest growth, with a CAGR of 28.7%.
Geography: China held the largest market share in 2020, representing over two-fifths of the market. Singapore is anticipated to grow at the fastest CAGR of 30.2%.
Key players in the Asian usage-based insurance market
According to AMR, major players in the Asia-Pacific UBI market include:
ASSICURAZIONI GENERALI SPA;
Allianz SE;
Aviva;
AXA;
Liberty Mutual Insurance;
Mapfre SA;
TomTom International;
Octo Group SpA;
Sierra Wireless; and
Vodafone Limited.
Based in Wilmington, Delaware, AMR is a market research and business consulting firm. It provides in-depth market research reports and business intelligence solutions to companies globally, helping them make strategic decisions and achieve sustainable growth.
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