Auto Insurers Embrace Telematics as UBI Market Forecast to Hit $70.5 Billion by 2030

The global usage-based insurance (UBI) market, valued at $46.9 billion in 2024, is projected to reach $70.5 billion by 2030, accelerating a shift toward telematics-driven risk assessment in auto insurance. Jeremy Jawish, CEO of Shift Technology, said insurers are moving “towards preventing losses, not just processing them.” Telematics gathers real-time driving data—braking, speeding, cornering—via onboard devices, smartphone apps, or connected vehicles. Cloud computing and AI then analyze the data to set personalized premiums, rewarding safer drivers with lower rates while raising costs for riskier behavior. Beyond pricing, the technology expedites claims. “Insurers can accelerate claims handling... and, in some cases, even enable near real-time resolution,” Jawish said. Adoption depends on clear value exchange for data sharing. Without proper stewardship, trust erodes. As UBI grows, safe driving practices become essential, and experts foresee data-sharing becoming mandatory for coverage.