Skip to the beginning of the images gallery

Global Automotive Insurance Growth Opportunities

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

INDUSTRY
Automotive

SECTOR
Business Strategy and Innovation

RELEASE DATE
29-Sep-2021

REGION
Global

DELIVERABLE TYPE
Market Research

RESEARCH CODE
PBD1-01-00-00-00

SKU
AU02230-GL-MT_25824

Global Automotive Insurance Growth Opportunities
Published on: 29-Sep-2021 | SKU: AU02230-GL-MT_25824

Need more details?

$4,950.00

$3,712.50 save 25 %

DownloadLink

downloadable link $0.00

Link1 sample $0.00

Select all

Qty

Request Sample

Need more details?

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

Strategic Imperatives

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™

Drivers and Restraints

Growth Drivers for Automotive Insurance

Growth Restraints for Automotive Insurance

Introduction to Auto 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

Connected 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

Shared Mobility and its Impact on Insurance

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 Vehicles

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

Autonomous Vehicles

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 Universe

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)

Next Steps

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

Legal Disclaimer

Request Sample

Have questions about this research or need deeper insights?
Speak directly with our analytics experts for tailored recommendations.

Recent related Business Strategy and Innovation research

06 Jun 2023 | Global | Market Outlook

Automotive Outlook, 2023

Global light vehicle (LV) sales reached 79.9 million units in 2022, registering 1.3% lower sales than in 2021. China was the top-selling market with 25.7 million units, ahead of the United States at 13.9 million and Japan at 4.1 million. The Russo-Ukrainian War resulted in production delays owing to...

Global Autonomous Shuttle Growth Opportunities

This research service provides a broad view of the autonomous shuttle market. It analyzes recent developments and key challenges and offers the latest updates on market size, forecasts, and regional trends. The study provides a detailed analysis of the autonomous shuttle markets in North America, Eu...

Global Shared Mobility Outlook, 2023

The pandemic has definitely brought about a lot of positive changes in the way people are moving. In this research analytics, we look at some key factors that we think will drive the demand for shared mobility. First is the pandemic-induced digital acceleration. People are now more open to using mob...

LATAM Automotive Growth Outlook 2023

The Latin American automotive industry continues to grow, despite COVID-19, scarcity of resources and auto parts, the Russo-Ukrainian War, inflation, and exchange rates affecting vehicles’ availability and prices. With 4.4 million units sold and a slow recovery from the pandemic, Latin American a...

China Automotive Outlook 2023

This study assesses the automotive market in China, focusing on the passenger vehicle (PV) market. Within this, Frost & Sullivan will also discuss electric vehicles (EVs), charging, and battery swapping. China’s automotive market has proliferated, particularly after the 2008 Beijing Olympics. T...

Report download
Growth Dialog™ with our experts

Growth Dialog™

A tailored session with you where we identify the:

Strategic Imperatives
Growth Opportunities
Best Practices
Companies to Action

Impacting your company's future growth potential.

Details

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

More Information
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