Motor Vehicle Insurance - Denmark

The Motor Vehicle Insurance market market in Denmark is expected to reach a market size (gross written premium) of US$2.86bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is projected to be US$481.00 in 2024.
Furthermore, the gross written premium is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of -2.05%, resulting in a market volume of US$2.58bn by 2029.
When comparing globally, it is worth noting that the United States will generate the highest gross written premium in 2024, with a staggering amount of US$341.6bn.
Denmark's motor vehicle insurance market is seeing a rise in demand for eco-friendly policies, reflecting the country's commitment to sustainability and green initiatives.

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 Denmark is experiencing a shift in customer preferences, trends, and local special circumstances, influenced by underlying macroeconomic factors.

Customer preferences: Customers in Denmark are increasingly valuing comprehensive coverage and add-on benefits in their motor vehicle insurance policies. This trend is driven by a growing awareness of the importance of financial protection in the event of accidents or vehicle damage. Additionally, there is a rising demand for personalized insurance solutions that cater to individual driving habits and usage patterns.

Trends in the market: One notable trend in the Danish Motor Vehicle Insurance market is the integration of telematics technology. Insurers are leveraging telematics devices to collect real-time data on driver behavior, allowing for more accurate risk assessment and tailored premium pricing. This trend not only promotes safer driving practices but also enables insurers to offer usage-based insurance policies, appealing to cost-conscious customers.

Local special circumstances: Denmark's emphasis on sustainability and eco-friendliness is influencing the Motor Vehicle Insurance market. Insurers are incentivizing customers to choose environmentally friendly vehicles by offering discounted premiums or specialized insurance products. This aligns with the country's commitment to reducing carbon emissions and promoting green initiatives in all sectors, including insurance.

Underlying macroeconomic factors: The stable economic growth and high disposable income levels in Denmark are contributing to the development of the Motor Vehicle Insurance market. As the standard of living improves, more individuals are purchasing vehicles, thereby expanding the customer base for insurance providers. Moreover, the competitive landscape among insurers is driving innovation and product differentiation to attract and retain policyholders in a flourishing market environment.

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.