- The usage-based insurance market is set to gain importance due to the pandemic.
- The UBI market is expected to reach $125.7 billion globally by 2027 at a compound annual growth rate of 23.0%.
In our recent Usage-Based Auto Insurance Report, we discussed how this business model, which enables insurers to charge customers per mile they’re driving or based on their driving behavior, rather than demographic information, will continue to grow in importance. The usage-based insurance (UBI) market is expected to reach $125.7 billion globally by 2027 at a compound annual growth rate of 23.0%, up from an estimated $24 billion in 2019, according to Reportlinker.com.
The coronavirus pandemic is driving the need for alternative insurance models to replace conventional policies. In response to consumers driving less due to lockdown restrictions, many auto insurers had