Connected Cars in Insurance – Thematic Research

The global connected cars market size was $27.3 billion in 2020 and the market is expected to grow at a CAGR of more than 7% between 2020 and 2030. A great proportion of the connected car market’s growth will not only be due to the year-on-year expansion of connected vehicles on roads but also due to the utilization of telematics technology. The expansion of the connected car market flags the potential for insurers to integrate personalized aspects of how motor insurance premiums are priced by utilizing vehicle data. This will be possible because connected vehicles will already have telematics technology as part of their daily functions.

The connected cars in the insurance sector research report give you a competitive edge as innovations and insurance models begin to enter the market. The report also gives insights into how regulation will impact the use of connected cars in insurance over the next few years.

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Key Trends in the Connected Cars Market

The key trends that are impacting the connected cars market can be classified into three categories: technology trends, macroeconomic trends, and regulatory trends.

• Technology trends – The key technology trends impacting the connected cars market include telematics, vehicle-to-infrastructure (V2I), eCall, Vehicle-to-vehicle (V2V), Vehicle-to-pedestrian (V2P), and others.
• Macroeconomic trends – The key macroeconomic trends that will shape the connected car market are the monetization of passenger miles, urbanization and demographic changes, and others.
• Regulatory trends – The key regulatory trends impacting the connected cars market include cybersecurity, data protection, and others.

Connected Cars Industry Analysis

The global connected cars market size was US$27.3 billion in 2020 and the market is expected to grow at a CAGR of more than 7% between 2020 and 2030. Policy implementation, technology and innovation, infrastructure, and consumer acceptance will all play a pivotal role in the development of the global motor insurance-connected car market. In 2020 the connected car industry was affected by the COVID-19 pandemic, forcing remote working and leaving consumers less concerned over their connectivity needs. Governments and businesses also had to divert their strategies to cope with the new normal.

Connected Cars Market Value Chain

The connected cars industry value chain can be split into product development, marketing and distribution, underwriting and risk profiling, claims management, and customer service.

Product development: The key layers under product development are large insurers, brokers, regulators, and OEMs. Many insurance companies have already integrated connected car features into their policies, such as the use of telematics, but the scope of these plans will expand as the level of connectivity in cars broadens

Connected Cars Market Value Chain Analysis

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Connected Cars Market - Competitive Landscape

The leading companies in the connected cars market are Metromile, By Miles, Mile Auto, Marmalade, Zego, Aviva, Admiral, and AXA.

Insurance Sector Scorecard

At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector. Our sector scorecards have a thematic screen and a valuation screen.

• The thematic screen tells us who are the overall leaders in the themes that matter most, based on our thematic engine.
• The valuation screen ranks our universe of companies within a sector based on selected valuation metrics.

Insurance Sector Scorecard – Thematic Screen

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Connected Cars Market Overview

Scope

• As connected cars have automatic data-generating capabilities, vehicle manufacturers will play an increased role in the distribution of motor insurance. Insurers will strike partnerships with manufacturers in order to ensure they have access to consumers’ driving data.
• While there are insurers and insurtechs that are pushing efforts to create more personalized products in private motor, insurtechs are the ones that have adapted telematics to create usage-based insurance services to price premiums. Meanwhile, insurers have utilized telematics to mitigate aspects of risks related to claims and reward customers for “good” driving behavior.
• Insurers that do not gain experience in connected vehicle data risk falling behind their rivals. Connected vehicles produce a massive amount of data, and insurers must build their capabilities and capacity to manage it.

Reasons to Buy

• Benchmark yourself against the rest of the market.
• Ensure you remain competitive as innovations and insurance models begin to enter the market.
• Be prepared for how regulation will impact the use of connected cars in insurance over the next few years.