North America Insurance Telematics Market Size

North America Insurance Telematics Market Analysis

The North America Insurance Telematics Market size is estimated at 81.96 Million active premiums in 2024, and is expected to reach 294.21 Million active premiums by 2029, growing at a CAGR of 29.10% during the forecast period (2024-2029).

The growing demand for telematic devices among the insurance and automotive sectors propels the market's growth. Many automotive companies invest in advanced telematics systems to gain a competitive edge. From application-specific telematics and computer imaging, fleet managers can access a wealth of information about the condition of their vehicles.

• Rising congestion and road traffic have made people's safety a top priority. Improving advanced vehicle features is a significant factor aiding the growth of the demand for vehicle insurance telematics. According to the National Safety Council, some 47,000 road traffic fatalities occurred in the United States in 2021, which was the most significant number of deaths recorded in the country since 2012. This fatality volume was slightly dipped in 2022, down to nearly 46,300. Motor vehicle crashes are a frequent cause of death in the United States.
• In addition, according to the official source, in 2023, there were 6,102,936 police-reported vehicle accidents in the United States. Of those, 39,508 were fatal. Such increases in road accidents may further create demand for insurance telematics in the region.
• Various governments are taking initiatives in road safety to avoid accidents or car crashes, which may create demand for insurance telematics in the region. Furthermore, Canada's fourth national road safety plan, the Road Safety Strategy (RSS) 2025, was launched by the Council of Ministers Responsible for Transportation and Highway Safety in early 2016. The goal remains to achieve downward trends in fatalities and severe injuries throughout a five-year duration, comparing multi-year rolling averages with the established baseline period.
• However, a lack of awareness of insurance telematics and privacy and security concerns somewhat hinder the market. On the other hand, increasing innovation in the automotive enterprise and untapped potential in emerging economies present new opportunities in the upcoming years.
• The COVID-19 pandemic had a positive impact on the insurance telematics industry. This is attributed to telematics directly addressing consumer needs to pay lower premiums when the vehicles had limited utilization during the lockdown.
• In addition, the pandemic changed insurers' demands from traditional actuarial and underwriting models to pay-as-you-drive (PAYD) models. In addition, increased acceptance of digital tools in the policy binding and claims process among consumers, combined with a need for insurers to design premium policies more precisely, are significant factors that notably contribute to the market's growth.