Motor Vehicle Insurance - Australia & Oceania

The Motor Vehicle Insurance market market in Australia & Oceania is projected to reach a market size of US$17.02bn in 2024, based on the gross written premium.
The average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$392.00 in 2024.
Looking ahead, the market is expected to grow at an annual growth rate of 0.10% (CAGR 2024-2029), resulting in a market volume of US$17.11bn by 2029.
In comparison to other countries, the United States is predicted to generate the highest gross written premium in 2024, amounting to US$341.6bn.
Australia & Oceania has seen a significant increase in demand for comprehensive motor vehicle insurance due to the country's high rate of car ownership and frequent natural disasters.

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 Australia & Oceania is experiencing significant growth and evolution.

Customer preferences: Customers in Australia & Oceania are increasingly seeking comprehensive motor vehicle insurance coverage to protect their vehicles from various risks such as accidents, theft, and natural disasters. There is a growing demand for policies that offer not only monetary compensation for damages but also additional benefits such as roadside assistance and coverage for personal belongings inside the vehicle.

Trends in the market: In Australia, the motor vehicle insurance market is witnessing a trend towards usage-based insurance, where premiums are determined based on individual driving behavior. This trend is driven by advancements in telematics technology, allowing insurers to collect data on driving habits such as speed, distance traveled, and braking patterns. As a result, safer drivers are rewarded with lower premiums, incentivizing responsible driving practices.

Local special circumstances: One of the unique factors influencing the motor vehicle insurance market in Australia is the geographical landscape, with vast distances between cities and remote areas. This presents challenges for insurers in terms of assessing risk and providing timely assistance in case of accidents. As a response, insurance companies are developing innovative solutions such as satellite-based tracking systems and partnerships with roadside assistance providers to improve service delivery across diverse terrains.

Underlying macroeconomic factors: The economic stability and regulatory environment in Australia & Oceania play a crucial role in shaping the motor vehicle insurance market. As disposable incomes rise and car ownership increases, there is a corresponding growth in the demand for insurance products. Additionally, government regulations mandating compulsory third-party insurance further the penetration of insurance coverage in the market. The overall economic growth and stability in the region contribute to the positive outlook for the motor vehicle insurance sector.

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.