Motor Vehicle Insurance - Cambodia

The Motor Vehicle Insurance market market in Cambodia is expected to reach a projected market size (gross written premium) of US$97.27m in 2024.
On average, per capita spending in the Motor Vehicle Insurance market market is estimated to be US$5.68 in 2024.
The gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -1.08%, leading to a market volume of US$92.12m by 2029.
In comparison to other countries worldwide, the United States is projected to generate the highest gross written premium of US$341.6bn in 2024.
Motor vehicle insurance premiums in Cambodia have been steadily increasing due to the rising number of accidents and vehicle thefts in the country.

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 Cambodia is experiencing significant growth and development. Customer preferences in the Motor Vehicle Insurance market in Cambodia are shifting towards comprehensive coverage options that provide a wider range of protection for policyholders. Customers are increasingly seeking insurance plans that not only cover damages from accidents but also include additional benefits such as roadside assistance and coverage for natural disasters. Trends in the market indicate a rising demand for Motor Vehicle Insurance in Cambodia due to the increasing number of vehicles on the road. As the country's economy grows and more people are able to afford cars and motorcycles, there is a corresponding increase in the need for insurance coverage to protect these vehicles and their owners from potential risks. Local special circumstances in Cambodia, such as the improving regulatory environment and the efforts to increase insurance penetration in the country, are contributing to the development of the Motor Vehicle Insurance market. The government's initiatives to promote insurance awareness and the strengthening of regulations to ensure the financial stability of insurance companies are creating a more conducive environment for market growth. Underlying macroeconomic factors, including the steady economic growth and rising disposable incomes in Cambodia, are also driving the expansion of the Motor Vehicle Insurance market. As more Cambodians enter the middle class and acquire vehicles, the demand for insurance coverage is expected to continue to increase, further fueling the growth 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.