Press release -
Insight Report: Technology in Action - A Roadmap for Insurance Telematics Research Report
Synopsis
The report covers in-depth analysis of the insurance telematics market, and provides:
- A roadmap for the growth and development of insurance telematics during 2013–2018
- Details of trends and developments in the insurance telematics market around the world
- Insights into key insurance telematics markets
- Detailed analysis of various growth drivers and challenges
- Details of products offered by leading insurance telematics providers in key markets
Browse Detail Report With TOC @ http://www.researchmoz.us/insight-report-technology-in-action-a-roadmap-for-insurance-telematics-report.html
Executive summary
Telematics has redefined the way motor insurance products are designed and marketed. As a disruptive technology in the insurance industry, insurance telematics offers huge growth potential as well as many challenges for motor insurers. It has brought the pricing of motor insurance to the discretion of customers, redefining the customer experience. Although insurance telematics is mostly used as a niche product to target high-risk drivers such as young motorists, its popularity during 2009–2013 has brought it into the mainstream of motor insurance business. Insurers, as well as government and vehicle manufacturers, are promoting initiatives to make telematics a mass-market product. Insurance telematics is widely seen as the future of motor insurance.
Demand for insurance telematics expected to soar over 2013–2018
The
insurance telematics market is in a nascent stage. The US, Italy and
the UK are the early adopters of insurance telematics products, and
Italy is currently the most mature market with a penetration rate of 4%
at the end of 2013. The estimated global sale of insurance telematics
products increased to 4.5 million as of December 2013, with an estimated
market size of US$4 billion in terms of gross written premium. The
potential of telematics technology to offer a win-win business relation
between insurer and policyholder is driving rapid growth of insurance
telematics products in the European and US markets. Global sales of
insurance telematics products are projected to grow at a CAGR of 80.20%
over 2013–2018, and the subscriber base is expected to reach 85.5
million in 2018. The growth in the insurance telematics market over
2013–2018 is expected to be driven by increased adoption of telematics
products in the UK, the US, and Italy.
Value-added services expected to define the future insurance telematics offerings
Initial
growth in the insurance telematics market will be mostly driven by
price discount models. However, with growth in the market and mass
adoption of insurance telematics over 2013–2018, price discounts will no
longer be helpful in differentiating insurance telematics products. In
countries where premium rates and profit margins are low, insurers will
not be able to offer great discounts on usage-based insurance products.
Insurers are expected to offer telematics-based value-added services for
a minimal fee, or free of charge, to attract customers and
differentiate products from those of their competitors. Key value-added
services that can packaged with insurance telematics products include
provision of driving feedback and professional driving instructions,
automatic eCall (alert call to emergency services in case of vehicle
collision) and bCall (breakdown call) facilities, roadside assistance,
emergency services, theft-tracking, remote vehicle monitoring and
diagnostic services, traffic and navigation services, fleet management,
and infotainment services.
Government initiatives to mandate the use of telematics expected to fuel growth of insurance telematics
Concerns
over road safety and increasing rates of auto theft have forced
governments in Europe, the US, Brazil and Russia to take initiatives to
make it mandatory for vehicle manufacturers to equip vehicles with
factory-fitted telematics devices.
Key initiatives include the eCall
initiatives in Europe, the Contran 245 legislation in Brazil, mandatory
event data recorder legislation in the US, and the Era–Glonass projects
in Russia. The European Commission’s eCall initiative, which is expected
to be implemented across Europe by the end of 2017 or early 2018, will
make it mandatory to provide the telematics-based eCall system in all
passenger cars and light commercial vehicles. Similar to eCall are the
Era–Glonass projects in Russia, where the government made it mandatory
for all cars built in Russia to be equipped with the Era-Glonass
satellite tracking system by January 2017. Both initiatives are taken to
improve road safety and provide immediate emergency services in
emergency situations or serious traffic accidents.
In the US, it has
been made mandatory to equip event data recorder systems in all new
cars, light trucks, vans and SUVs sold in the US from September 1, 2014
to improve road safety in the country. However, the Mario Monti
legislation in Italy and the Contran 245 legislation in Brazil have been
introduced primarily to address the very high rate of auto theft. The
Mario Monti legislation came into effect in June 2012, whereas the
Contran 245 is expected to be implemented from January 1, 2016. Insurers
can use the mass adoption of telematics technology to offer low-cost
insurance telematics products in the respective countries.
Disruptive technological innovations the biggest challenge for insurance telematics
Technological
innovations in the field of connected car systems and automation in
driving are expected to revolutionize driving in the future. Vehicle
manufacturers and technology providers have collaborated to develop and
manufacture self-driven or driverless vehicles; companies such as
Google, Volvo, General Motors, Mercedes Benz, Audi, Ford, BMW,
Volkswagen, Toyota and Nissan are investing in driverless car
technology. The technology is primarily aimed to increase road safety
and reduce the rate of traffic accidents.
Google claims to reduce the
rate of traffic accidents by 90% with its driverless car technology,
and Volvo claims that it will provide an accident-free driving
experience with its new cars by 2020. Drivers’ roles in driving these
cars are expected to be very limited, or even non-existent, leaving
little scope for insurers to track driving behavior and, therefore,
making telematics redundant. However, driverless technology is still in a
development phase, and it will take around two decades for driverless
cars to come to the mainstream of the automobile industry and have a
significant impact on insurance and telematics.
Browse Reports in Insurance @ http://www.researchmoz.us/insurance-market-reports-161.html
Scope
- This report covers current market size and growth potential of the global insurance telematics market during 2013–2018
- The report discusses how the global insurance telematics market will shape up during 2013–2018
- The report analyzes the use of telematics beyond motor insurance
- The report provides a comparative analysis of key insurance telematics markets: Italy, the US and the UK
- The report provides a comparative analysis of products offered by leading insurance telematics providers in Italy, the US and the UK
Reasons to buy
- Gain insights into the global insurance telematics market.
- Know the growth potential of the insurance telematics market.
- Understand various factors driving the growth of insurance telematics in the market, and key challenges faced by insurers.
- Gain insights into key insurance telematics markets.
- Gain information on various products offered by insurance telematics providers in key markets.
Key highlights
- The estimated size of the global insurance telematics market as of December 2013 is US$4 billion in terms of gross written premium, with 4.5 million subscribers
- Italy is currently the most mature insurance telematics market with a penetration rate of 4% at the end of 2013
- Insurers are expected to offer telematics-based value-added services bundled with insurance services to attract customers and differentiate products from those of their competitors
- Mandatory use of telematics in vehicles, enforced by various governments, is expected to increase the penetration of insurance telematics during 2013–2018
- Innovations in connected car systems and automation in driving are expected to shorten the lifespan of insurance telematics
For More Information Kindly Contact:
Email: sales@researchmoz.us
Topics
- Business enterprise, General
Regions
- Albany
About ResearchMoz
ResearchMoz is the one stop online destination to find and buy market research reports & Industry Analysis. We fulfill all your research needs spanning across industry verticals with our huge collection of market research reports. We provide our services to all sizes of organizations and across all industry verticals and markets. Our Research Coordinators have in-depth knowledge of reports as well as publishers and will assist you in making an informed decision by giving you unbiased and deep insights on which reports will satisfy your needs at the best price.
marketresearchreports-biz