Global Automotive Insurance Growth Opportunities

Global Automotive Insurance Growth Opportunities

New Connected, Autonomous, Shared, and Electric (CASE) Mobility Models Will Lead to Transformational Growth

RELEASE DATE
29-Sep-2021
REGION
Global
Research Code: PBD1-01-00-00-00
SKU: AU02230-GL-MT_25824
$4,950.00
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$4,950.00
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Description

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.

Table of Contents

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

Related 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.
More Information
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