A new study by Valuates Reports has instilled a ray of hope in the insurance market. According to the reports, the global usage-based insurance market is predicted to reach $77.25 billion by 2026. Also, the market is awaited to grow at a compound annual growth rate of 20.32% between 2020 and 2026.
In the upcoming years, such growth of usage-based insurance is estimated due to an increase in the adoption of smartphones and connecting vehicles to it. Valuates Reports studied that auto manufacturers are working appreciably in the manufacture of smartphones and tablets. This is to deliver products and desirable services and make them available in vehicles.
Moreover, the tremendous growth in the app-based usage-based insurance market is observed. This is majorly due to an increase in demand for electric vehicles. It has encouraged the development of applications that enable users to connect their smartphones to their cars. Well, this is to test the vehicle’s battery.
Moreover, the usage-based industry minimizes the risk of accidents and vehicle thefts. Usage-based insurance uses telematics that deals with the long-distance transmission of computerized information. As per Valuates Reports, it tracks driving behavior and uses the same telematics to find missing or stolen vehicles through GPS. Furthermore, such factors are expected to raise the demand for usage-based insurance market size.
The insurance companies offering telematics insurance is constantly lifting several factors. Moreover, this is how they will promote and improve the quality of solutions and equip their customers with better schemes.