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Motor Vehicle Insurance - Bangladesh

Bangladesh

The Motor Vehicle Insurance market market in Bangladesh is expected to reach a market size (gross written premium) of US$3.12bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is projected to be US$17.87 in the same year.
The market is anticipated to show an annual growth rate (CAGR 2024-2029) of 3.75%, resulting in a market volume of US$3.75bn by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium of US$341.6bn in 2024.
In Bangladesh, the motor vehicle insurance market is experiencing a surge in demand due to the increasing number of vehicles on the road.

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Analyst Opinion

The Motor Vehicle Insurance market in Bangladesh has been experiencing steady growth over the past few years.

Customer preferences: Customers in Bangladesh have shown a growing interest in comprehensive motor vehicle insurance coverage to protect their assets. With an increasing number of vehicles on the road, there is a higher demand for insurance policies that offer extensive coverage in the event of accidents or damages.

Trends in the market: One noticeable trend in the Bangladeshi Motor Vehicle Insurance market is the shift towards digital platforms for purchasing insurance policies. Insurers are leveraging technology to reach a wider customer base and streamline the insurance buying process. Additionally, there is a trend towards offering more customized insurance packages to cater to the diverse needs of vehicle owners in the country.

Local special circumstances: Bangladesh has a unique traffic landscape characterized by congested roads and a high rate of road accidents. This has led to a greater awareness among vehicle owners about the importance of having insurance coverage. The government's strict enforcement of vehicle insurance regulations has also contributed to the market's development.

Underlying macroeconomic factors: The overall economic growth in Bangladesh has resulted in an increase in disposable income among the population. As a result, more individuals are purchasing vehicles, leading to a higher demand for motor vehicle insurance. Additionally, the stability of the insurance regulatory environment in the country has boosted consumer confidence in the market.

Methodology

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.