African Connected Auto Insurance Study
Automakers are about to shake up the auto insurance industry
Discovery insurance, based in South Africa, is a great example of why Tesla–who recently began offering their own UBI products in some US states–is actually “behind the curve” when looking at global UBI progress. Having being active in the UBI industry for the last Decade, Discovery is a vanguard on the global stage proving that the Reward-How-You-Drive (RHYD) concept can work well, when implemented correctly into a receptive market. Furthermore, they have provisions in place for multi-platform data consumption, thus ensuring that the continuity of their products will be maintained, irrespective of data source.
However, the Africa region clearly demonstrates a preference for OBDII and blackbox-based UBI policies, and by 2030 these hardware will account for over 50% of the regional market. Furthermore, due to the significance of smartphone-based programmes championed by the likes of Discovery Insure and its significance in South Africa, smartphone-based UBI will account for nearly 40% of the market in 2030 too, which can be attributed to the ease of app distribution and relative low cost.
This report covers the African region, with a particular view on the connected auto insurance industry in South Africa
PTOLEMUS Consulting Group’s African Connected Auto Insurance Global Studyis the African regional cut of our market-leading 4th edition of our market-leading series of global studies investigating the usage-based insurance industry.
It provides an unparalleled analysis of the current state of the African UBI industry, as well as insight into how the use of connected car data will increase over the next 10 years, and how much market share aftermarket device types will lose as a result.
Today, the market for connected auto insurance in Africa represents 340,000 active policies across all types of distribution models and technologies, generating €109 million in premiums. We expect that the increasing ease and lowering costs of data collection will allow UBI-based policies to grow to 1.56 million across the African region, particularly in South Africa, by 2030.
The African Connected Auto Insurance Global Study includes:
- A 435-page analysis of the connected auto insurance industry by technology, distribution model and country
- A comprehensive review of the latest trends and developments for African UBI
- Case studies of how OEMs and Insurtechs are gaining a foothold in the industry
- Profiles and rankings of the top insurance companies and TSPs
- A profile of the top country (South Africa) leading the African connected insurance industry
- A strategy analysis and assessment of the 4 key routes OEMs are using to enter the connected insurance market
- Regional-level forecasts from 2020-2030, including:
- Active policies, by device type
- Total premiums, by device type
- TSP revenue forecasts