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The UBI system gives the added benefits of both insurer and driver in the form of pricing. For instance, effective UBI solution has potential to reduce claim costs by 40% and administration cost by half. Request a sample report: http://www.technavio.com/request-a-sample?report=55699 Technavios sample reports are free of charge and contain multiple sections of the report including the market size and forecast, drivers, challenges, trends, and more. Technavio automotive analysts highlight the following four factors that are contributing to the growth of the global automotive UBI market: Government initiatives decaturautotire.com decatur il auto repair encouraging use of telematics Regulations for motor insurance Growing demand for embedded telematics solutions Government initiatives encouraging use of telematics Passenger vehicles are the largest users of telematics systems worldwide due to the increased demand for vehicle tracking and navigation services in passenger vehicles. Among the services offered by telematics solutions for passenger vehicles, e-Call and stolen vehicle tracking have been the key areas of focus for many regulatory bodies across the world. Siddharth Jaiswal, a lead automotive manufacturing analyst at Technavio, says, Developing countries like India and China are already into the development of regional navigation systems to support telematics service providers and reduce dependency on the US navigation system GPS. This step will lead to a reduction in the cost of telematics devices in these countries. Regulations for motor insurance Regulations play a critical part in the adoption of insurance in the automotive segment. Most countries in the world mandate motor insurance. It will be beneficial for drivers to adopt UBI due to advantages such as reduced premium cost and enhanced safety through the monitoring of driving behavior.
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