Motor Vehicle Insurance - Cyprus | Statista Market Forecast

The Motor Vehicle Insurance market market in Cyprus is expected to reach a projected gross written premium of US$699.90m in 2024.
In the same year, the average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$551.80.
Looking ahead, the market is anticipated to grow at an annual rate of 2.27% (CAGR 2024-2029), resulting in a market volume of US$782.90m by 2029.
It is worth noting that in global comparison, the United States is expected to generate the highest gross written premium of US$341.6bn in 2024.
Cyprus has seen a rise in demand for comprehensive motor vehicle insurance coverage due to increasing traffic congestion and accidents.

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 Cyprus has been experiencing notable developments in recent years.

Customer preferences: Customers in Cyprus are increasingly looking for comprehensive motor vehicle insurance coverage that not only protects their vehicles but also offers additional benefits such as roadside assistance and coverage for personal belongings. This shift towards more inclusive policies is driven by the desire for greater peace of mind and convenience in the event of an accident or breakdown.

Trends in the market: One prominent trend in the Cyprus Motor Vehicle Insurance market is the growing popularity of usage-based insurance. This innovative approach uses telematics technology to track driving behavior, allowing insurance companies to offer more personalized premiums based on individual risk profiles. As more drivers in Cyprus seek ways to lower their insurance costs and improve their driving habits, the demand for usage-based insurance is expected to continue rising.

Local special circumstances: Cyprus's unique geographical features, including its diverse terrain and varying road conditions, play a significant role in shaping the Motor Vehicle Insurance market. The prevalence of mountainous regions and coastal areas can lead to different types of accidents and insurance claims, influencing the types of coverage that are in high demand among Cypriot drivers. Additionally, the island's relatively high rate of vehicle ownership compared to its population size contributes to the competitive nature of the insurance market.

Underlying macroeconomic factors: The overall economic stability and growth in Cyprus have also impacted the Motor Vehicle Insurance market. As the economy continues to recover from past challenges, more consumers have the financial means to invest in comprehensive insurance coverage for their vehicles. Additionally, regulatory changes and initiatives aimed at improving road safety and reducing accidents have prompted both insurers and policyholders to reassess their coverage needs and preferences.

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.