Revenue forecast

The revenue estimate for the base year 2023 is $336.3 million, with a CAGR of 19.9% for the study period 2021–2030

The Impact of the Top 3 Strategic Imperatives on Usage-based Insurance in Leasing and Rental Fleets

Disruptive Technologies

Why

• The prevalence of digital channels over traditional banks and insurance brokers, the existence of several online aggregators, and the sharing of client experiences on social media have all had a significant impact on consumer behavior.
• Insurers have used digital technology to automate a wide range of insurance processes, enabling smoother points of sale, real-time decision-making, and straightforward claims processing.

Frost Perspective

• Technological advancements will expand UBI portfolios and enable more customized fleet solutions. Data sourced from telematics devices will provide detailed information about accident reconstruction and stolen vehicle recovery, making for an easy claims process.
• Car connectivity and advanced technologies, such as 5G connections, have paved the way for smartphone-based UBI products. Smartphones will emerge as a broad platform for fleet UBI solutions.

Competitive Intensity

Why

• The mobility sector was greatly affected by the COVID-19 pandemic. Driving restrictions impacted drivers and insurance providers, which made customers reconsider underutilized automotive insurance and switch to digital plans.
• Insurtech companies have a competitive edge in offering scalable and customized UBI solutions to the European fleet industry.

Frost Perspective

• The surge of the COVID-19 pandemic pushed automotive insurance companies to offer customized policies to their drivers. Digital policies will be the key solution replacing traditional policies.
• Many insurance companies are evolving in Europe to offer digital insurance services by strategically partnering with ecosystem providers, telematics service companies, and more.

Industry Convergence

Why

• Traditional insurance companies dominate the industry. They provide limited solutions in areas where consumers spend a lot of money on car insurance, but there are methods to minimize common prices.
• As the number of EVs in European fleets grows, digitalization and UBI rules will become increasingly important.

Frost Perspective

• The insurance industry witnessed a tectonic shift after the COVID-19 pandemic. Europe is witnessing rising industry convergence, with digitalization taking the lead.
• Tech start-ups and seasoned tech companies have an opportunity to form partnerships or enter into M&As to offer scalable UBI solutions and platforms to serve the EV fleet segment.

Scope of Analysis

• The study also examines current and future UBI trends in leasing, rental, and corporate-owned fleets as well as future growth opportunities.
• Furthermore, the study examines and projects subsegments to offer a comprehensive view of the overall industry.
• UBI’s growth in Europe is directly attributed to the adoption of telematics technology. Telematics devices installed in fleet vehicles collect data about driving style and behavior, including speed, acceleration, braking, and mileage, which affect vehicle and driver safety.
• The collected telematics data from fleet management companies allows insurance companies to assess risk more accurately and offer tailored insurance premiums.

Competitive Environment

Key Competitors

• ALD Automotive
• Alphabet
• Arval
• Athlon
• Avis
• Europcar
• Free2Move
• Hertz
• LeasePlan
• Targa Telematics
• Octo Group S.P.A
• Insurance & Mobility Solutions (IMS)
• Lexis Nexis
• Scope Technologies
• TrakGlobal
• Cambridge Mobile Telematics (CMT)
• Quartix
• Trakm8
• Allianz
• Aon
• AXA
• Admiral Group
• Aviva
• RSA
• By Miles
• Groupama
• Generali
• Unipolsai Assicurazioni S.P.A
• Daimler
• PSA Group
• Renault
• BMW
• Ford