Motor Vehicle Insurance - Africa | Statista Market Forecast

The Motor Vehicle Insurance market market in Africa is expected to reach a market size of US$24.67bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is projected to be US$18.98 in 2024.
With an annual growth rate of 0.70% (CAGR 2024-2029), the gross written premium is estimated to reach US$25.54bn by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium in the Motor Vehicle Insurance market market, with US$341.6bn in 2024.
In South Africa, the motor vehicle insurance market is experiencing a rise in demand due to an increase in car ownership and a focus on road safety.

Definition:

Motor vehicle insurance, often referred to as auto insurance, is a type of coverage that offers financial protection to individuals who own or operate vehicles like cars, motorcycles, or trucks. When you have motor vehicle insurance, you pay regular premiums to an insurance company, and in return, the insurer helps cover the costs associated with accidents, damages, and injuries related to your vehicle. This insurance market is essential for providing security and financial assistance in case of accidents, ensuring that individuals can repair or replace their vehicles.

Additional information:

The market contains the following KPIs: gross written premium aggregated for all countries and regions, gross written premium per capita, and the share of insureds in the total population for over 50 countries.

Insurance of land motor vehicles

Accident insurance
Insurance for aerial vehicles
Insurance for watercraft
insurance for spacecraft
All other insurance types, such as life insurance and health insurance
Reinsurance

The Motor Vehicle Insurance market in Africa is experiencing significant growth and development in recent years.

Customer preferences: Customers in Africa are increasingly seeking comprehensive motor vehicle insurance coverage to protect their assets and mitigate financial risks associated with accidents and theft. There is a growing awareness among consumers about the importance of having insurance coverage for their vehicles, leading to a rise in demand for various types of motor vehicle insurance products.

Trends in the market: In countries like Nigeria, South Africa, and Kenya, there is a noticeable trend towards the adoption of usage-based insurance policies, where premiums are based on individual driving behavior. This trend is driven by advancements in telematics technology, allowing insurance companies to more accurately assess risk and tailor premiums accordingly. Additionally, the market is seeing a shift towards digital distribution channels, making it more convenient for customers to purchase and manage their motor vehicle insurance policies online.

Local special circumstances: In South Africa, the motor vehicle insurance market is influenced by the high rate of car ownership and the prevalence of vehicle theft and accidents. As a result, comprehensive insurance coverage is particularly popular among South African consumers. In Nigeria, the market is characterized by a large population of uninsured drivers, leading to efforts by the government and insurance companies to increase insurance penetration through awareness campaigns and affordable insurance products.

Underlying macroeconomic factors: The growth of the motor vehicle insurance market in Africa is also supported by favorable macroeconomic factors such as rising GDP per capita, urbanization, and a growing middle class. As disposable incomes increase, more individuals are able to afford motor vehicles and the corresponding insurance coverage. Additionally, regulatory reforms aimed at strengthening the insurance industry and improving consumer protection have contributed to the overall development of the market.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

As the population of the United States grows, so too does the number of drivers on the road and thus the customer base for motor insurance. In 2022, there were over 280 million registered vehicles on the roads in the United States. Of those millions of registered vehicles, each year there are also millions of vehicle crashes. Road traffic fatalities in the U.S. peaked in 2021. So while many individuals feel secure in their vehicles, the statistics indicate the importance of automobile insurance and in most cases, auto insurance is required by law. Auto insurance is important because it not only covers any physical damage that may occur in an accident, but also any damage or injury that might be caused because of a vehicular accident or which may be done upon oneself or one’s vehicle by another vehicle or accident – a falling tree for example.