UBI Market Reaches €200 Billion by 2035: Telematics Policies to Insure 180 Million Vehicles Globally

The Usage-Based Insurance (UBI) market has reached over 60 million customers globally, generating more than €50 billion in premiums. Insurers are increasingly embedding UBI into their corporate apps, making it a central part of the customer experience. PTOLEMUS Consulting Group predicts that by 2035, 180 million vehicles will be insured with telematics policies, generating more than €200 billion in premiums.

The Usage-Based Insurance (UBI) market has reached over 60 million customers globally, generating more than €50 billion in premiums. Insurers are increasingly embedding UBI into their corporate apps, making it a central part of the customer experience. PTOLEMUS Consulting Group predicts that by 2035, 180 million vehicles will be insured with telematics policies, generating more than €200 billion in premiums 4 Insurance Brokerage Stocks to Watch Amid Increased Digitalization^[1].

UBI, which adjusts insurance premiums based on real-time driving data, is transforming the insurance industry. It offers customers personalized insurance rates based on their driving habits, encouraging safer driving and reducing fraud. Insurers benefit from more accurate risk assessment, leading to improved pricing and underwriting standards.

The integration of UBI into corporate apps is a significant trend in the insurance industry. By offering UBI as part of their customer experience, insurers can enhance customer engagement and loyalty. This digital shift is expected to drive premium growth and boost efficiency .

However, the adoption of UBI is not without challenges. The increased use of data analytics and AI integration enables brokers to offer personalized services, but it also raises concerns about data privacy and security. Insurers must navigate regulatory environments that are evolving to keep up with technological advancements.

Looking at the broader insurance brokerage industry, the Zacks Insurance - Brokerage industry carries a Zacks Industry Rank #160, indicating dull near-term prospects. The industry has underperformed its sector and the Zacks S&P 500 Composite over the past year, with stocks losing 17.6% compared to the Finance sector’s growth of 18.8% and the Zacks S&P 500 composite’s appreciation of 19.9% .

Despite these challenges, the insurance brokerage industry is expected to benefit from better pricing, prudent underwriting, rising demand for insurance products, and global expansion. The fast-paced consolidations in the industry are also expected to benefit key players such as Brown and Brown, Inc. (BRO), Marsh & McLennan Companies, Inc. (MMC), Arthur J. Gallagher & Co. (AJG), and Willis Towers Watson Public Limited Company (WTW) .

In conclusion, the growing adoption of UBI is a significant trend in the insurance industry, poised to reshape customer experiences and drive industry growth. However, the industry must navigate challenges related to data privacy and regulatory compliance. The future of the insurance brokerage industry looks promising, with expected growth driven by better pricing, prudent underwriting, and increased demand for insurance products.

4 Insurance Brokerage Stocks to Watch Amid Increased Digitalization^[1]: PTOLEMUS Consulting Group
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