Insurance telematics is vehicle insurance in which the prices depend upon the vehicle type and is effectively calculated against the driver’s behavior, time & distance traveled, and several other categories. Telematics insurance is different from traditional insurance that rewards and differentiate drivers by offering lower premiums. A black box is installed in the vehicle to determine and monitor the driving style, braking conditions, cornering, and several other skills of the driver.
One of the major factors driving the growth of the global insurance telematics market is the security and safety concerns among people. The telematics information is advantageous under several circumstances like in communicating with police authorities instantly in case of accidents and prompt actions. Telematics systems help automotive companies, drivers, and insurers with the highest safety services. The telematics safety and security services include medical assistance, emergency help, and automatic crash notification. The growing initiatives to overcome the privacy concerns and complications with insurance telematics are likely to further promulgate the growth of the global market in the forthcoming years.
The surging trend of ride-sharing, car-sharing, carpooling, and other types of business process models are gaining immense traction in the market. However, the rates of carpooling are low but it is expected to grow exponentially in the forthcoming years. Furthermore, the government is also supporting the growth of telematics services all across the globe. The low cost of connectivity solutions along with the surge in regulatory compliance will also escalate the growth of insurance telematics. The emergence of cloud computing and advanced technologies like the internet of things is likely to create several lucrative growth opportunities in the global insurance telematics market.
The global insurance telematics market can be segmented into deployment, organization size, offering, type, and region.
By deployment, the market can be segmented into an on-premise and cloud model.
By organization size, the market can be segmented into small-medium enterprises and large organizations.
By end-user, the market can be segmented into commercial and passenger vehicles.
By type, the market can be segmented into pay as you go, pay how you drive, and pay as you drive.
By offering, the market can be segmented into software and hardware.
North America accounts for the largest share in the global insurance telematics market due to the presence of key players in the region. Furthermore, the ongoing technological advancements and the growing scope of interconnected services & solutions will also boost the growth of the regional market.
Asia Pacific is expected to witness a significant growth rate in forthcoming years due to the growing adoption of IoT technologies and telematics in the region. Furthermore, the growing initiatives from the government to encourage the adoption of insurance telematics will further accelerate the growth of the regional market.
Some of the significant players in the global insurance telematics market are Meta System S.p.A, Octo Telematics S.p.A, TRIMBLE INC, Sierra Wireless Inc., MiX Telematics Ltd., Masternaut Ltd., Intelligent Mechatronic System, Aplicom, TomTom Telematics BV, and Agero Inc. To cite, Toyota Motor Corporation in November 2017 signed a collaboration agreement with MS&AD Insurance Group Holdings, Inc. to build driving behavior-based insurance telematics in Japan.