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The motor vehicle insurance market size is estimated to grow at a CAGR of 8.68% between 2022 and 2027. The market size is forecast to increase by USD 405.19 billion. The growth of the market depends on several factors, including increasing government regulations on mandatory insurance coverage in developing countries, a rise in automobile sales, and an increasing number of accidents.
This motor vehicle insurance market report extensively covers market segmentation by application (personal and commercial), distribution channel (brokers, direct, banks, and others), and geography (North America, APAC, Europe, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing government regulations on mandatory insurance coverage in developing countries are notably driving the market growth, although factors such as tightening regulatory environment for insurance players the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the motor vehicle insurance market growth is the increasing government regulations on mandatory insurance coverage in developing countries. Most of the countries worldwide such as India and China have made it mandatory that motor insurance is required for any vehicle that runs on public roads. For instance, anyone who owns or operates a vehicle in Maine, US, must carry at least the minimum amount of insurance required by the law. The law requires uninsured/underinsured motorist coverage at a minimum of USD 50,000 per person or USD 100,000 per accident.
As the global economy is growing, there is a significant increase in the number of vehicles in those developing countries which in turn is significantly driving the motor vehicle insurance market. Factors such as Insurance becoming mandatory for citizens and increasing government regulations on mandatory insurance coverage in developing countries are expected to drive the global motor vehicle insurance market during the forecast period.
A key factor shaping the motor vehicle insurance market growth is the digitalization of the motor vehicle insurance industry. Digitization has revolutionized the motor vehicle insurance market in certain ways over the years. Motor vehicle insurance companies have shifted their focus toward providing more convenient, efficient, and personalized services to their clients due to the rapid advancement in technology.
One of the key transitions that happened with the advancement of digitization is that it has transformed the way customers interact with motor vehicle insurance companies, making it easier for them to access and purchase motor vehicle insurance policies through online channels. Also, another significant impact of digitization in the motor vehicle insurance market is the emergence of Insurtech companies. With the help of technology, these companies are curating personalized motor vehicle insurance products and services that are tailored to customer preferences. Hence, such factors are expected to drive the global motor vehicle insurance market during the forecast period.
Tightening the regulatory environment for insurance players is one of the key challenges hindering the motor vehicle insurance market growth. There are increasing introductions of regulations and establishment of regulatory bodies regarding motor vehicle insurance across countries such as Australia and the US. For instance, Australia has two regulatory bodies for insurance players, namely the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC).
Additionally, In the US, for the implementation of more uniform rules and regulations on motor vehicle insurance, the country has its own regulatory body called the National Association of Insurance Commissioners (NAIC). Therefore, due to the increasing number of government regulations, motor vehicle insurance companies may face a significant threat of increased prerequisites for the motor vehicle insurance industry. This will directly impact the global motor vehicle insurance market as its revenue which is expected to hinder the global motor vehicle insurance market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Motor Vehicle Insurance Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Allianz SE: The company offers motor vehicle insurance under the brand, Bajaj Allianz.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the personal segment will be significant during the forecast period. A personal insurance cover in motor vehicle insurance can be referred to as a financial facility for the owner or driver of the vehicle. It is a mandatory extension that is supposed to be taken by the owner of the vehicle under the Motor Policy, whether opting for a Comprehensive Package or Third-Party Liability Policy and it is mainly issued in the name of the owner of the vehicle, and the owner is entitled to the cover only if they possess a valid driving license.
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The personal segment was valued at USD 536.82 billion in 2017 and continued to grow until 2021. One of the key benefits of personal insurance is that it is an add-on cover that provides protection against any accidental injuries to the owner or driver of the insured motor vehicle. In addition, other benefits include compensation in case the owner or driver of the vehicle has a permanent disability, bodily injuries, or death caused due to the motor vehicle accident. Hence, such factors are expected to drive the growth of this segment which in turn will drive the growth of the drive the global motor vehicle insurance market during the forecast period.
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North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the key factors for the stability of the motor vehicle insurance market in North America is the presence of a regulatory environment in the region. The regulatory framework is well-established in the region and is designed in such a way as to protect consumers and ensure fair competition among insurers. These legal bodies also work with insurance companies to promote market stability, consumer protection, and financial soundness within the industry. Factors such as the sensitivity of the public in the region toward personal safety and the safety of one's property and the region's mature market of smartphone users are driving the global motor vehicle insurance market in the region during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global motor vehicle insurance market witnessed a significant slowdown due to the temporary halt of operations of insurance companies in North America. Also, the restricted use of automobiles led to a decline in motor vehicle insurance in 2020. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the resumption of travelling activities across North America, resulting in the high demand for motor vehicle insurance. Such factors are expected to drive the market during the forecast period.
The motor vehicle insurance industry report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global motor vehicle insurance market as a part of the global specialized consumer services market within the globally diversified consumer services market. The parent global specialized consumer services market covers revenue generated by the consumer service providers, including residential services, home security services, legal services, personal services, renovation, and interior design services, consumer auction services, wedding services, and funeral services. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Motor Vehicle Insurance Market Scope |
|
Report Coverage |
Details |
Page number |
163 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.68% |
Market growth 2023-2027 |
USD 405.19 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
8.25 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 41% |
Key countries |
US, China, Japan, UK, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allianz SE, American International Group Inc., Aviva Plc, AXA Group, Berkshire Hathaway Inc., Chubb Ltd., Desjardins Group, Discovery Ltd., Kotak Mahindra Bank Ltd., Liberty Mutual Holding Co. Inc., Navi Technologies Ltd, OCTO Telematics S.p.A, Reliance Capital Ltd., Sompo Holdings Inc., State Farm Mutual Automobile Insurance Co., The Allstate Corp., The Hanover Insurance Group Inc., The Progressive Corp., The Travelers Co. Inc., and Zurich Insurance Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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