Europe Insurance Telematics Market Size

Europe Insurance Telematics Market Analysis

The Europe Insurance Telematics Market size is estimated at USD 0.79 billion in 2024, and is expected to reach USD 2.26 billion by 2029, growing at a CAGR of 23.34% during the forecast period (2024-2029).

The market is expected to witness the active adoption of new methods through plug-and-play apparatus and in-vehicle intelligent monitoring systems, revolutionizing buying vehicle insurance. Government regulations in different European countries are also likely to back the idea of insurance telematics by making the process mandatory and boosting market growth.

• Telematics is a term that combines the terms telecommunication and informatics. Telematics is used in vehicle insurance to track, store, and send driving-related data. This information helps determine driving habits and determine appropriate vehicle insurance premiums. Pay-as-you-drive, Pay-how-you-drive, and Manage-how-you-drive are three usage-based insurance-based telematics income models discussed in the report.
• The latest innovation in the vehicle insurance market is the integration of telematics technology. The combination of telematics has helped encourage safer driving styles among drivers, helping them save on insurance premiums simultaneously. The constant monitoring device available these days due to advancements in telematics helps analyze the drivers accurately and proceed with ensuring their vehicles.
• Usage-based insurance (UBI) or telematics is the term for using telematics technology in the context of automobile insurance. Automotive insurers can use these solutions to improve pricing processes based on driving data, improve claim control, and distinguish their products from current and future policyholders. Behavior-based pricing schemes are adopted by most of the insurers in the regions studied, leveraging different data monitoring techniques.
• According to the Department of Transport, there were an estimated 1,760 fatalities in reported road accidents in Great Britain in 2022. Moreover, there were an estimated 29,804 reported killed or seriously injured in the same year. Such rising numbers of road fatalities are driving the need for the studied market.
• In the wake of the global COVID-19 pandemic, which has thrown asset-heavy businesses like rental companies into disarray, fleet management vendors are developing new use cases for their customers to help them shift fleets to meet the growing demand for logistic and medical transportation, thereby fostering the market growth.