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Insurance Telematics in Europe and North America - 7th Edition

  • PDF Icon

    Report

  • 253 Pages
  • October 2023
  • Region: Europe, North America
  • Berg Insight AB
  • ID: 5575694
Description Jump to:

Europe and North America to Reach 49.9 Million Insurance Telematics Policies by Year-End 2027

What are the latest trends on the Insurance telematics market? The analyst estimates that the total number of insurance telematics policies in force on the European market reached 13.6 million at the end of 2022. Growing at a compound annual growth rate of 8.9 percent, the number of active insurance telematics policies in Europe is estimated to reach 20.7 million by 2027. In North America, the total number of insurance telematics policies in force is forecasted to increase from an estimated 16.8 million policies at the end of 2022 to reach 29.2 million policies by 2027. Get up to date with the latest industry trends in this 250-page strategy report.

Europe and North America Reached 30.4 Million Active Insurance Telematics Policies in 2022

The number of insurance telematics policies in force on the European market reached 13.6 million in Q4-2022. Growing at a compound annual growth rate (CAGR) of 8.9 percent, this number is expected to reach 20.7 million by 2027. In North America, the number of insurance telematics policies in force is expected to grow at a CAGR of 11.7 percent from 16.8 million in Q4-2022 to reach 29.2 million in 2027. The US, Italy, the UK and Canada are still the largest markets in terms of insurance telematics policies.

In North America, the market is dominated by US-based Progressive, Allstate, Liberty Mutual, Nationwide and State Farm as well as Intact Financial Corporation and Desjardins in Canada. The Italian insurers UnipolSai and Generali together accounted for around 50 percent of the telematics-enabled policies in Europe. Insurers with a strong adoption in the UK include Admiral Group and Direct Line.

The European insurance telematics market is largely dominated by aftermarket black boxes while mobile applications followed by self-install OBD devices represent the vast majority of the active policies in North America. The analyst expects a continued increase in the uptake of smartphone-based solutions in all markets as well as an increase in the use of OEM telematics data in usage-based insurance programs.

The insurance telematics value chain spans multiple industries including a large ecosystem of companies extending far beyond the insurance industry players. “Automotive OEMs like Ford, General Motors, Mercedes-Benz, Stellantis, Tesla and Toyota have all launched solutions to enable usage based insurance for their customers”, said Caspar Jansson, IoT Analyst. Connected car applications put OEMs closer to the drivers and 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.

Aftermarket telematics still plays an important role in the market for usage-based insurance. Octo Telematics has a dominant market share with more than 5.7 million devices installed in insurance telematics programs. Other end-to-end solution providers such as Vodafone Automotive, Viasat Group, Targa Telematics, IMS and The Floow are also important players on the insurance telematics market. “Smartphone-based insurance telematics solutions are becoming a more mature solution now and we can see many insurers that start to take advantage of the concept’s potential in claims handling and as a marketing tool for example”, continued Mr Jansson. Cambridge Mobile Telematics is a leading player in the mobile-based segment of insurance telematics and powers more than 10 million insurance telematics policies, mainly in the US.

Other notable vendors of smartphone-based insurance telematics solutions include Arity (subsidiary of Allstate), Dolphin Technologies, Radius Telematics, Sentiance, OSeven Telematics, Movingdots, DriveQuant, Sycada and Telematics Technologies. “The uptake of smartphone-based insurance telematics policies is motivated by the low cost for implementation and insurers can also increase their customer interaction and loyalty with well-thought-out marketing and gamification features”, concluded Mr. Jansson.

Highlights from the report

  • Insights from 30 new executive interviews with market leading companies.
  • Comprehensive overview of the insurance telematics value chain and key applications.
  • In-depth analysis of market trends and key developments.
  • Case studies of 63 insurance telematics initiatives.
  • Summary of the involvement of vehicle OEMs and mobile operators.
  • New data on vehicle populations in Europe and North America.
  • Market forecasts by country lasting until 2027.

This report answers the following questions:

  • What types of insurance telematics products are offered on the market?
  • Which are the leading providers of insurance telematics technology?
  • Which are the dominant technology form factors on each market?
  • Which are the most successful insurance telematics programs today?
  • How are mobile operators approaching the insurance telematics market?
  • How are the vehicle OEMs involved in the ecosystem?
  • Which are the major drivers and barriers for insurance telematics adoption?
  • Which are the key future trends in this industry?

Who should read this report?

Insurance Telematics in Europe and North America is the foremost source of information about the insurance telematics markets in these regions. Whether you are a telematics vendor, insurance company, vehicle manufacturer, telecom operator, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.

Table of Contents


Executive Summary
1 The Automotive Market
1.1 The automotive market in Europe
1.1.1 Vehicles in use and car density
1.1.2 New car registrations and leading manufacturers
1.2 The automotive market in North America
1.2.1 Vehicles in use and car parc density
1.2.2 New car registrations and leading manufacturers
1.3 Automotive insurance
1.3.1 Basic insurance terminology and categorisations
1.3.2 The fundamentals of automotive insurance
1.3.3 Traditional automotive insurance risk rating and pricing criteria
1.3.4 Developments of the actuarial toolbox for motor insurers
1.4 The European automotive insurance market
1.5 The North American automotive insurance market

2 Insurance Telematics Solutions
2.1 Introduction to insurance telematics
2.1.1 The rationale for telematics-based insurance policy pricing
2.1.2 Brief history of insurance telematics offerings
2.2 Usage-based insurance and related concepts and applications
2.2.1 Manual reporting
2.2.2 Usage-based insurance telematics - PAYD, PHYD, MHYD and TBYB
2.2.3 Continuous and time-limited telematics data recording
2.2.4 Usage-based pricing vs. claims-related insurance telematics
2.2.5 Personal lines and commercial lines insurance telematics
2.2.6 Value-added services related to insurance telematics
2.3 Insurance telematics infrastructure
2.3.1 Vehicle segment
2.3.2 Insurer segment
2.3.3 End-user segment
2.3.4 Network segment
2.3.5 GNSS segment
2.4 Business models
2.4.1 In-house development
2.4.2 Leveraging telematics partners
2.4.3 Underwriting without direct client interaction

3 The European Insurance Telematics Market
3.1 Regional market characteristics
3.1.1 Italy
3.1.2 United Kingdom
3.1.3 Iberia
3.1.4 Austria
3.1.5 France
3.1.6 Benelux
3.1.7 Switzerland
3.1.8 The Nordics
3.1.9 Germany
3.1.10 Central and Eastern Europe
3.2 Insurance telematics case studies
3.2.1 More than 45 percent of the vehicles insured by UnipolSai feature a black box
3.2.2 Generali offers a wide portfolio of insurance telematics products
3.2.3 Smartphone-only solutions - a growth engine for Allianz’s telematics offerings
3.2.4 AXA offers its insurance telematics portfolio in multiple European countries
3.2.5 Admiral Group has multiple insurance telematics programs in Europe
3.2.6 Insure The Box has sold more than 1.0 million black box-based policies
3.2.7 Direct Line Group acquires pay-per-mile insurer By Miles
3.2.8 Aviva chooses device-based telematics in the UK
3.2.9 Zego launches behavioural based pricing for UK fleets
3.2.10 Ingenie targets drivers in the 17- to 44-year-old age bracket
3.2.11 Granite acquires Carrot Insurance from IMS
3.2.12 Ardonagh Group expands its UBI offering with Marmalade and Be Wiser
3.2.13 RSA offers UBI via 123GO
3.2.14 AbbeyAutoline (Prestige) renews ChilliDrive with Howden Driving Data
3.2.15 Markerstudy Group offers UBI through SmartDriverClub Insurance and Co-op
3.2.16 Stellantis has a long experience in UBI on the European market
3.2.17 Mercedes-Benz offers UBI in Germany
3.2.18 HUK-Coburg relaunched Telematik Plus in 2019
3.2.19 VHV’s Telematik Garant switched to a mobile based telematics solution
3.2.20 German insurer Signal Iduna shuts down its UBI program
3.2.21 EMIL powers pay-per-mile telematics products in Germany
3.2.22 DEVK implements Dolphin Technologies in its app-based telematics offering
3.2.23 UNIQA focuses on new IT infrastructure and leaves UBI
3.2.24 Groupama offers insurance telematics in multiple countries
3.2.25 Risk has launched several insurance telematics products in the Netherlands
3.2.26 MAPFRE provides insurance telematics products in Spain and the US
3.2.27 ÖSA and Sparkassen Versicherung offer eCall services in Germany
3.2.28 GDV launches eCall service with participating German insurers
3.2.29 Zavarovalnica Triglav brings UBI to Slovenia
3.2.30 PZU Group and Link4 offer telematics programs in Poland
3.2.31 CHERRISK rewards safe driving
3.2.32 HDI Global offers telematics solutions in the UK and Italy
3.2.33 Zurich invested in the UK telematics insurance provider MyPolicy in 2021
3.2.34 If Insurance has long experience of telematics in the Nordics
3.2.35 Paydrive leverages aftermarket and OEM telematics for UBI
3.2.36 VIS pioneers telematics insurance in Iceland

4 The North American Insurance Telematics Market
4.1 Regional market characteristics
4.1.1 United States
4.1.2 Canada
4.2 Insurance telematics case studies
4.2.1 Progressive is the UBI telematics pioneer in the US
4.2.2 State Farm works with CMT to enhance the Drive Safe & Save program
4.2.3 Allstate offers Drivewise and Milewise in the US
4.2.4 Liberty Mutual has a broad portfolio of telematics products
4.2.5 Desjardins offers a smartphone app for insurance telematics in Canada
4.2.6 Nationwide offers UBI based on OBD, smartphone and OEM telematics data
4.2.7 Farmers offers mobile-based insurance telematics from Driveway Software
4.2.8 Travelers acquires insurtech Trov
4.2.9 GEICO offers a smartphone-based telematics program in select US states
4.2.10 Toyota Insurance Management Solutions offers UBI in the US
4.2.11 CAA offers MyPace and Connect powered by OCTO Telematics
4.2.12 Root Insurance is a smartphone-based insurance company
4.2.13 USAA enhances insurance offering by acquiring UBI focused Noblr
4.2.14 Mobileye and Munich Re collaborate in Munich Re’s Smart Mobility program
4.2.15 Progressive has launched a second commercial UBI product
4.2.16 Nationwide offers commercial lines insurance telematics solutions
4.2.17 Philadelphia Insurance Companies offers fleet insurance telematics
4.2.18 True Mileage uses NFC and works with Ohio Mutual Insurance Group
4.2.19 Liberty Mutual strengthens UBI client base with State Auto acquisition
4.2.20 Ford, Hyundai, Honda and GM join Verisk Telematics Data Exchange
4.2.21 CMT powers multiple safe driving contests in the US
4.2.22 Intact discontinues its device-based program in favour of mobile solutions
4.2.23 Lemonade acquires Metromile
4.2.24 American Family Insurance offers three UBI programs
4.2.25 HDVI pioneers telematics UBI for fleets of semi-trailer trucks
4.2.26 Tesla to underwrite its own telematics insurance policies
4.2.27 Pouch and Mojio partner to offer fleet insurance to small businesses

5 Market Forecasts and Trends
5.1 Market analysis
5.1.1 Insurance telematics policies and penetration in Europe and North America
5.1.2 Form factor developments in Europe and North America
5.2 Value chain analysis
5.2.1 Insurance industry players
5.2.2 Telematics industry players
5.2.3 Automotive industry players
5.2.4 Telecom industry players
5.2.5 IT industry players
5.2.6 Mergers and acquisitions in the insurance telematics space
5.3 Market drivers and barriers
5.3.1 Macroeconomic environment
5.3.2 Regulatory environment
5.3.3 Competitive environment
5.3.4 Technology environment
5.4 Future industry trends
5.4.1 Continued broadening of the insurance telematics concept is expected
5.4.2 Insurers will embrace both UBI and claims-related insurance telematics
5.4.3 Formfactor shift to favour mobile devices
5.4.4 Connected cars pave the way for mass-marketisation of insurance telematics
5.4.5 Fleet insurance telematics to disrupt the fleet tracking market
5.4.6 Privacy concerns are softening across customer segments
5.4.7 Big Data: Ownership and portability of telematics data to be scrutinised
5.4.8 Insurance telematics aims to reduce distracted driving
5.4.9 Mobility trends provide new opportunities for telematics-based insurance
5.4.10 Vehicle diagnostics data from connected cars can create value for insurers
5.4.11 Outlook: Insurance telematics is growing rapidly in other regions
5.4.12 Pay-per-mile insurance programs are resurging
5.4.13 Insurers to explore other IoT verticals
5.4.14 The insurance telematics concept to be applicable for more vehicle types
5.4.15 Autonomous cars alter the playing field for motor insurance
5.4.16 Automotive OEMs bet on insurance telematics
5.4.17 Insurers begin to offer wider functionality in their app-based UBI solutions

6 Company Profiles and Strategies
6.1 Agero
6.2 Arity
6.3 Azuga
6.4 Brightmile
6.5 CalAmp
6.6 Cambridge Mobile Telematics
6.7 CCC Information Services
6.8 ClearScore
6.9 Dolphin Technologies
6.10 Earnix
6.11 FairConnect Group
6.12 Greater Than
6.13 Howden Driving Data (Howden Group)
6.14 IMS
6.15 Insure Telematics Solutions
6.16 Inzura
6.17 LexisNexis Risk Solutions
6.18 Meta System
6.19 Motix Connected
6.20 Movingdots (Powerfleet)
6.21 Munic Car Data
6.22 OCTO Telematics
6.23 OSeven Telematics
6.24 Quartix
6.25 Radius Telematics
6.26 Redtail Telematics
6.27 Sentiance
6.28 Scope Technology
6.29 Sycada
6.30 Targa Telematics
6.31 Telematics Technologies
6.32 The Floow
6.33 Trakm8
6.34 Verisk Analytics
6.35 Viasat Group
6.36 Vodafone Automotive
6.37 Webfleet
6.38 Zendrive

List of Acronyms and Abbreviations
List of Figures
Figure 1.1: Vehicles in use (EU+EFTA+UK 2021)
Figure 1.2: Passenger car density per 1,000 inhabitants (EU+EFTA+UK 2021)
Figure 1.3: Passenger car registrations by manufacturer (EU27+UK+EFTA 2022)
Figure 1.4: Vehicles in use (North America 2021)
Figure 1.5: Passenger car registrations by manufacturer (North America 2022)
Figure 1.6: Motor insurance statistics (EU22+3 2021)
Figure 2.1: Distribution of fatal crashes by day of week and time of day (US 2020)
Figure 2.2: Subcategories of usage-based insurance and insurance telematics
Figure 2.3: Schematic classification of insurance telematics
Figure 2.4: Insurance telematics infrastructure overview
Figure 2.5: Examples of principal insurance telematics form factors
Figure 2.6: Examples of feedback from Progressive’s smartphone app Snapshot
Figure 2.7: Example of a windscreen-mounted Bluetooth device from CMT
Figure 2.8: GDV-Stecker 12 V device provided by Bosch
Figure 2.9: Nextbase’s Dash Cam 522 GW and Rear Window Cam module
Figure 2.10: Schematic insurance telematics risk rating process
Figure 2.11: Web- and smartphone-based interfaces and dashboards for end-users
Figure 2.12: Telematics strategies for insurance providers
Figure 3.1: Allianz’s top telematics markets (Q3-2023)
Figure 3.2: Overview of the Your Portal interface for insurethebox policyholders
Figure 3.3: Marmalade Young Driver app and tag developed by CMT
Figure 3.4: Windscreen device and app from VHV
Figure 3.5: User interface of Sijox’s AppDrive
Figure 3.6: The VOOROP dashboard on a desktop and smartphone
Figure 4.1: Progressive’s Snapshot OBD-II telematics device supplied by Xirgo
Figure 4.2: State Farm’s Bluetooth-beacon enhanced smartphone app
Figure 4.3: Growth of Allstate’s UBI offer Drivewise (2011-2022)
Figure 4.4: Travelers IntelliDrive
Figure 4.5: Mobileye 8 Connect including camera, GPS unit and EyeWatch display
Figure 5.1: Insurance telematics policies and penetration (Europe 2022-2027)
Figure 5.2: Insurance telematics policies by country (North America 2022-2027)
Figure 5.3: Distribution of insurance telematics form factors (Europe 2022-2027)
Figure 5.4: Distribution of insurance telematics form factors (North America 2022-2027)
Figure 5.5: Key players in the insurance telematics value chain
Figure 5.6: Examples of telematics hardware providers serving the insurance space
Figure 5.7: M&As in the insurance telematics space (2014-2023)

Samples

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Executive Summary

The integration of telematics technology constitutes the latest revolution in the automotive insurance industry. The concept of telematics is a portmanteau of telecommunications – long-distance communications – and informatics – the science of information. Telematics in general thus refers to the collection of information related to remote objects such as vehicles via telecommunications networks. The introduction of telematics technology in the context of automotive insurance is commonly referred to as usage-based insurance (UBI) or insurance telematics. Solutions of this type generally enable automotive insurers to improve pricing mechanisms based on actual driving data, gain better control of claims and differentiate their offerings to current and prospective policyholders. Variants of insurance telematics that have been popularised over the years include behavior-based pricing models such as Pay-As-You-Drive (PAYD), Pay-How-You-Drive (PHYD), and Manage-How-You-Drive (MHYD).

The addressable market for insurance telematics is significant. A total of around 317 million vehicles were in use in the EU22+3 in 2019, including over 277 million passenger cars. In North America, an estimated total of around 293 million vehicles were in use in 2019, out of which passenger cars and light trucks are estimated to represent around 277 million vehicles. Some kind of basic automotive insurance is mandatory in most developed countries and there are in addition several subcategories of insurance that provide coverage for different types of unforeseen events involving motor vehicles. Motor gross written premiums in EU22+3 reached a total of over € 142.3 billion in 2019. The equivalent number for North America was US$ 253.2 billion (€ 226.2 billion) in 2019.

The insurance telematics market is currently in a phase of strong growth which is expected to accelerate in the coming years. Europe and North America so far represent the vast majority of all insurance telematics programs and active policies from an international perspective, and the front-running national markets include the US, Italy, Canada, the UK, and Germany. Berg Insight estimates that the total number of insurance telematics policies in force in the European market reached 13.1 million at the end of 2020. Growing at a compound annual growth rate of 21.7 percent, the number of insurance telematics policies in force in Europe is estimated to reach 35.1 million by 2025. In North America, the total number of insurance telematics policies in force is forecasted to increase from an estimated 16.7 million policies at the end of 2020 to reach 49.0 million policies by 2025, representing a compound annual growth rate of 24.0 percent.

In the US, the top three insurers in terms of UBI policies have all introduced smartphone-based solutions to supplement or replace the previously used OBD dongles. The several US and Canadian insurers have during the recent year re-assessed and re-launched their telematics programs. The North American insurance carriers are also exploring claims-related insurance telematics and many are adding distracted driving parameters in their UBI. The European insurance telematics market is still dominated by insurers in Italy and the UK, with an estimated 9.7 million and 1.3 million policies respectively. The market in Germany has grown considerably during 2020 and reached about 0.7 million telematics policies. Uptake on all other markets is considerably lower, with between 120,000 and 440,000 policies in Spain, France, Benelux as well as Central and Eastern Europe.

The insurance telematics value chain spans multiple industries. Insurers with a notable presence in the insurance telematics market include Progressive, UnipolSai, State Farm, Allstate, Generali, Allianz, HUK-Coburg, Admiral, AXA, Liberty Mutual, Intact, and Insure The Box. Insurance players can either develop telematics programs independently or rely on partners to varying degrees. Smartphone-based telematics players have taken significant market shares during the past years. Leading vendors of smartphone-based insurance telematics solutions include Cambridge Mobile Telematics and Arity. Additional vendors include Telematics Technologies, Amodo, and DriveQuant. Important telematics suppliers active in the insurance field include Octo Telematics, Vodafone Automotive, Viasat Group, Targa Telematics, Redtail Telematics, and IMS (Trak Global Group), and The Flow. Other players in the insurance telematics market include Modus, Baseline Telematics, LexisNexis Risk Solutions, Verisk, CCC Information Services, OSeven, and Sentiance. Automotive OEMs are increasingly taking an active part in the ecosystem. Examples include General Motors, Ford, PSA Group, Honda, Renault-Nissan-Mitsubishi, Toyota, Tesla, BMW, Daimler, and Hyundai.

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • AbbeyAutoline 
  • Admiral Group
  • Agero
  • Allianz
  • Allstate
  • American Family Insurance
  • Ardonagh Group
  • Arity (subsidiary of Allstate)
  • Aviva
  • AXA
  • Azuga
  • Brightmile
  • CAA
  • CalAmp
  • Cambridge Mobile Telematics
  • CCC Information Services
  • CHERRISK
  • ClearScore
  • CMT
  • Desjardins
  • DEVK
  • Direct Line Group
  • Dolphin Technologies
  • DriveQuant
  • Earnix
  • EMIL
  • FairConnect Group
  • Farmers
  • Ford
  • GEICO
  • General Motors (GM)
  • Generali 
  • GM
  • Granite
  • Greater Than
  • Groupama
  • HDI Global
  • HDVI
  • Honda
  • Howden Driving Data (Howden Group)
  • HUK-Coburg
  • Hyundai
  • IMS
  • Ingenie
  • Insure Telematics Solutions
  • Insure The Box
  • Intact Financial Corporation 
  • Inzura
  • Lemonade
  • LexisNexis Risk Solutions
  • Liberty Mutual
  • Link4
  • MAPFRE
  • Markerstudy Group
  • Mercedes-Benz
  • Meta System
  • Mobileye
  • Mojio
  • Motix Connected
  • Movingdots (Powerfleet)
  • Munic Car Data
  • Munich Re
  • Nationwide
  • OCTO Telematics
  • ÖSA
  • OSeven Telematics
  • Philadelphia Insurance Companies
  • Pouch
  • Progressive
  • PZU Group
  • Quartix
  • Radius Telematics
  • Redtail Telematics
  • Risk
  • Root Insurance
  • RSA
  • Scope Technology
  • Sentiance
  • Signal Iduna
  • Sparkassen Versicherung
  • State Auto
  • State Farm
  • Stellantis
  • Sycada
  • Targa Telematics
  • Telematics Technologies
  • Tesla
  • The Floow
  • Toyota
  • Trakm8
  • Travelers
  • True Mileage
  • UnipolSai
  • UnipolSai (Italy)
  • UNIQA
  • USAA
  • Verisk
  • Verisk Analytics
  • VHV
  • Viasat Group
  • Vodafone Automotive
  • Webfleet
  • Zavarovalnica Triglav
  • Zego
  • Zendrive
  • Zurich

Methodology

 

 

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