The number of insurance telematics policies in force on the European market reached 12,8-million in Q4-2019, according to a new research report from Berg Insight.
Growing at a compound annual growth rate (CAGR) of 28,2%, this number is expected to reach 44,5-million by 2024.
In North America, the number of insurance telematics policies in force is expected to grow at a CAGR of 29,6% from 14,7-million in Q4-2019 to reach 53,6-million in 2024. The US, Italy, the UK and Canada are still the largest markets in terms of insurance telematics policies.
The insurance telematics value chain spans multiple industries including a large ecosystem of companies extending far beyond the insurance industry players.
“Automotive OEMs such as General Motors, Honda, BMW, Daimler, Hyundai, Toyota and PSA Group now show an increasing interest in insurance telematics,” says Martin Svegander, senior analyst at Berg Insight.
Players such as LexisNexis Risk Solutions, Verisk and CCC Information Services partner with OEMs and normalise connected car data in telematics exchanges which enables insurers to utilise telematics data from a vast range of sources as long as the policyholders agree to share their driving data.
“Smartphone-based insurance telematics solutions are now offered on a broad scale in both Europe and North America,” adds Svegander. “The uptake of smartphone-based insurance telematics policies is further fuelled by the Covid-19 pandemic situation. Insurers that have launched smartphone-based telematics products are at an advantage and can deploy UBI policies without installing telematics devices avoiding unnecessary human contact.”