As Car Ownership Ends, Rent Your Ride Offers Insurance Opportunities

As most people know the WEF policy for society is wonderfully simple; you will own nothing and be happy. Certainly car ownership is on the decline and has been for two decades as leasing a vehicle became more cost effective than losing a fortune in depreciation some years ago. But let’s think ahead, to a time when public transport, holidays and car access is rationed, both by price and carbon credits. Owning any vehicle will be a waste of cash for about half the population, even if they could afford it.

The solution will be on-demand car rental for an annual holiday to an eco-camp, or a trip to see your family 2 or 3 times a year. To get to an EV hire point users may have to use trams, self driving guided buses perhaps, or a hired cargo bicycle. All those options offer insurance marketing opportunities. Multiple rented transport might be the most efficient way of moving around super-cities of the future.

The insurance premiums could be debited via a smartphone app, or a chip planted inside the driver’s head. Sounds crazy? That’s what Elon Musk wants to do, so don’t rule it out.

Here’s the word on the new personal Mobility market for the mid-21st century.

A new study from Juniper Research found that MaaS (Mobility-as-a-Service) will generate revenue of $92 billion globally by 2027, up from $20 billion in 2022. Growing by 357% over the period, the main drivers will be the cost and convenience of MaaS solutions and the increased investment into MaaS infrastructure.

MaaS platforms provide consumer urban transport solutions, such as bus, metro and ride hailing, all integrated into a single platform; enabling users to organise a multi-modal journey through one billing relationship.

•    To find out more, see the report: Mobility-as-a-Service: Business Models, Vendor Strategies & Market Forecasts 2022-2027•    Download the free whitepaper: How Incentivisation Can Increase Mobility-as-a-Service Adoption

Subscription Model to Boost Revenue Growth

The report predicts that, by 2027, 65% of global MaaS revenue will be generated through subscriptions – for a flat monthly fee, users gain access to a variety of transport services, providing a more cost-effective and convenient transit proposition. However, the report anticipates that the current use of an ad hoc charging model will continue to be crucial in fostering consumer trust; enabling potential users to trial MaaS journeys for a one-off fee. Ad hoc models enable users to pay for a single journey, rather than committing to an ongoing subscription.

Research Author Cara Malone remarked: “The ability to pay for a single journey in an app, despite leveraging multiple modes of transport, will create substantial cost savings for users, in comparison to individual transit services. MaaS platforms must promote these savings to attract users away from established transport services and towards subscription plans for MaaS services.”

MaaS Driven by Increasing Urban Population

As urban populations increase over the next five years, transit planning authorities must consider the potential of a MaaS solution to ease congestion and reduce pollution from private vehicles. The report urges transit planning authorities to take a holistic approach to urban mobility by integrating MaaS into the wider smart city ecosystem to leverage real-time data from smart city sensors and maximise reductions in congestion and pollution.

About alastair walker 12125 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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