According to the research report titled ‘Global Usage Based Insurance Market Size study with COVID-19 impact, by Technology (Smartphone, On-board diagnostics (OBD)- II and Hybrid and Black-Box), by Type (Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD) and Manage-How-You-Drive (MHYD)) and Regional Forecasts 2020-2027’, available with Market Study Report, global usage based insurance market was appraised at USD 24 billion in the year 2019 and is likely to register a 23% CAGR during the forecast period, subsequently accounting for USD 125.73 billion by the year 2027.
 

Widespread adoption of telematic systems and connected vehicle technologies is one of the key factors driving the growth of global usage based insurance market. Notably, usage based insurance provides coverage services on the basis of the total distance a vehicle driver covers.
 

It primarily relies on telematic instruments for collecting automotive operating information which further enables insurance companies in measuring the charges of coverage policies accurately as well as efficiently.
 

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It is also worth mentioning that telematic systems and connected cars not only provide accurate feedback of driving patterns, but also allow insurance firms to change the cost of their coverage based on the predicted risk, which in turn is fueling global usage based insurance market size.
 

According to Statista, the overall number of connected cars had reached 50 million units in the year 2019, which is expected to reach 76.3 million by 2023.
 

Decreasing cost of insurance premium is also promoting the overall business scenario. However, lack of standardized regulations could potentially hamper the global usage based insurance industry remuneration in the forthcoming years.
 

The emerge of Coronavirus outbreak is also negatively impacting the overall market outlook, owing to enforcement of lockdowns to curb the spread of the disease. Moreover, these lockdowns have significantly hampered the automotive sector, which in turn has hindered the demand for usage based insurance services.
 

Regionally, North America usage based insurance industry is likely to showcase a robust CAGR through 2027, primarily due to widespread adoption of Mobility as a Service as well as increasing collaborations between insurance companies and telematics manufacturers.
 

Meanwhile, Asia-Pacific is likely to generate lucrative returns for worldwide usage based insurance industry in the ensuing years, owing to proliferating production and sales of vehicles.

Aviva plc, Metromile, Mapfre S.A., Assicurazioni Generali S.p.A., Desjardins General Insurance, Allstate Corporation, Progressive Corporation, Insure The Box Limited, Axa S.A., and Allianz SE are the key participants in global usage based insurance market.