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Global Automotive Insurance Growth Opportunities
New Connected, Autonomous, Shared, and Electric (CASE) Mobility Models Will Lead to Transformational Growth
29-Sep-2021
Global
Market Research
This report identifies the new scenarios that are impacting the automotive insurance industry and the evolving and new business models in this space. The study identifies and analyzes the trends and the shifts in the industry, focusing particularly on 4 areas—connected, autonomous, shared, and electric.
The automotive insurance industry has witnessed a rapid transformation over the last few years to become a smarter industry. The traditional one-for-all approach in terms of premium rates is becoming a thing of the past. Insurance rates today are driven by algorithms that are based on a number of factors that capture the true cost of risk. This provides significant cost savings to both the insurance firms and the insured.
These changes in the automotive insurance industry can be largely attributed to innovations happening within the mobility space. Technological evolution has brought about disruptions in mobility, resulting in connected, autonomous, shared and electric (CASE) solutions. This, in turn, has resulted in new types of risks in the mobility landscape that needs to be covered by insurance, thereby making traditional insurance solutions redundant and further requiring a change in the way insurance is assessed.
Currently, the connected vehicle space is driven by telematics and data-driven models that create new insights on driver behavior. This has also led to smart/digital accident-detection and first-notice-of-loss (FNOL) solutions that enable more accurate real-time claims. With innovative shared mobility models set to become more normative, firms will look to capture multiple risk periods and scenarios to provide insurance cover by the minute. The market for insurance for electric vehicles (EVs) is still in a nascent stage. As the market evolves, it is likely to lead to more data surrounding EV battery performance and fires, lower component costs, and a developed used-part and aftermarket channel, all of which will attract innovative insurance business models.
The autonomous vehicle (AV) market is currently largely untapped. Beyond 2025, with regulations kicking in, the market for AV insurance will take shape, largely driven by the new autonomous safety features that will cause significant changes in terms of calculations for premiums and regulations surrounding liability in case of an accident.
Why Is It Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top Three Strategic Imperatives on the Auto Insurance Landscape
Growth Opportunities Fuel the Growth Pipeline Engine™
Growth Drivers for Automotive Insurance
Growth Restraints for Automotive Insurance
Evolution of Auto Insurance—Major Shifts within the Auto Insurance Market
Evolution of Auto Insurance—Major Shifts within the Auto Insurance Market (continued)
Portfolio of Insurance Service by Major Traditional Players
Trends Impacting Traditional Auto Insurance
OEMs Entering the Insurance Space through Collaboration
Impact of Connected, Autonomous, Shared, Electric (CASE) Solutions on Traditional Insurance
In-vehicle Electronics to drive New Connected Vehicle Insights in Insurance
The Connected Car—A Smartphone on Wheels
Otonomo’s Connected Car Marketplace—Impact on Auto Insurance
User-based Insurance (UBI) Driving New Insights
UBI leading to Contextual Driver Behavior Score
Amodo’s Pay-how-you-drive Model
Metromile’s PPM Model
Accident Reconstruction—A Boon to Insurance Providers
Digital Accident, Detection, and Response (ADR)—Beyond Insurance
MDGO’s ADR Solution
Major Traditional Players Offering Some Form of Shared Mobility Insurance
Major Traditional Players Offering Some Form of Shared Mobility Insurance (continued)
Changing Insurance Landscape for Ride-sharing/Ride-hailing
Changing Insurance Landscape for Car-sharing
Changing Insurance Landscape for Micromobility
Shared Mobility Insurance Model by Different Risk Periods
Tesla’s Insurance Model For Ride-hailing
Tesla’s Insurance Model a Challenge to Uber/Lyft
UBI to Transform Shared Mobility Insurance, a Use Case
Trov’s Embedded Insurance Model
Future of Ride-hail Insurance to include Medical Cover—Little’s COVID-19 Insurance
Electric Vehicle (EV) Market—Current Insurance Scenario
Battery Issues—Factors Impacting Battery Performance
EV-related Fires and Implications for Insurance
As the EV Market kicks-off, Battery Fires become a Cause of Concern
Other Persisting Challenges and Risks
EV Risk Implications on Auto Insurance and Claims
OEMs’ own Insurance Solutions—The Case of Tesla
Insurance Add-ons to Cover Expensive EV Components
The Future Case of Driver Charging-behavior Insurance
Swiss Re + Twaice—A Performance-based Insurance/Warranty for Li-on Batteries
Special Purpose Vehicles (SPVs) and New Insurance Models
The AV Market and Insurance
Degree of Autonomy vs. Insurance Premium
Impact of Autonomous Safety Technology on Claims and Injuries—Crash Avoidance Technologies
Autonomous Vehicles creating New Insurance Focus Areas
Swiss Re’s Innovative ADAS Risk Scorecard
Transfer of Risk—Shift in Liability Cover from Drivers to OEMs
Self-driving Vehicle Fatalities and the Relevance of Insurance Firms
Future Roadmap of the Motor Insurance Industry
Growth Opportunity in EV Market—EV Standards for Granular Insurance Liability
Growth Opportunity in EV Market—EV Standards for Granular Insurance Liability (continued)
Growth Opportunity in Connected Vehicle Market—Regulatory Compliance for Greater Accountability
Growth Opportunity in Connected Vehicle Market—Regulatory Compliance for Greater Accountability (continued)
Growth Opportunity in Shared Mobility Market—Granular Risk Identification for Flexible On-demand Insurance
Growth Opportunity in Shared Mobility Market—Granular Risk Identification for Flexible On-demand Insurance (continued)
Your Next Steps
Why Frost, Why Now?
List of Exhibits
List of Exhibits (continued)
Legal Disclaimer
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| Deliverable Type | Market Research |
|---|---|
| No Index | No |
| Podcast | No |
| Author | Vijay Narayanan Natarajan |
| Industries | Automotive |
| WIP Number | PBD1-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9800-A6,9A70-A6,9882-A6,9AF6-A6,9B13-A6 |