Motor Vehicle Insurance - GCC | Statista Market Forecast

The Motor Vehicle Insurance market market in GCC is projected to reach a market size (gross written premium) of US$7.78bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$128.80 in the same year.
It is expected that the gross written premium will show an annual growth rate (CAGR 2024-2029) of 1.31%, leading to a market volume of US$8.30bn by 2029.
In comparison to other countries, the United States will generate the highest gross written premium of US$341.6bn in 2024.
In the GCC, the motor vehicle insurance market is experiencing a surge in demand due to the increasing number of luxury cars on the roads.

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 GCC is witnessing significant growth and development, driven by various factors shaping consumer preferences, market trends, local special circumstances, and underlying macroeconomic factors in the region. Customer preferences in the GCC Motor Vehicle Insurance market are shifting towards comprehensive coverage options that provide a wide range of benefits and protection. Customers are increasingly seeking insurance policies that offer not only basic coverage for accidents and damages but also additional features such as roadside assistance, car replacement services, and coverage for natural disasters. This growing demand for comprehensive coverage is driving insurance companies in the GCC to innovate and offer tailored solutions to meet the evolving needs of their customers. Trends in the GCC Motor Vehicle Insurance market are also influenced by the regulatory environment and technological advancements in the industry. Insurers in the region are adopting digital platforms and mobile applications to streamline the insurance purchasing process, offer personalized services, and enhance customer experience. Moreover, there is a growing trend towards usage-based insurance models, where premiums are based on individual driving behavior and patterns. This trend is not only promoting safer driving practices but also enabling insurers to better assess risks and customize pricing for policyholders. Local special circumstances in the GCC, such as the high rate of vehicle ownership and the prevalence of luxury cars in the region, are also impacting the Motor Vehicle Insurance market. The affluent population in the GCC countries tends to own high-value vehicles that require specialized insurance coverage, including protection against theft, vandalism, and high repair costs. As a result, insurance companies are tailoring their products to cater to the unique needs of this market segment, offering bespoke insurance solutions for luxury and high-performance vehicles. Underlying macroeconomic factors, such as economic growth, regulatory reforms, and government initiatives to promote insurance penetration, are further driving the development of the Motor Vehicle Insurance market in the GCC. The region's strong economic performance and increasing disposable incomes are boosting consumer spending on insurance products, including motor vehicle coverage. Additionally, regulatory reforms aimed at enhancing transparency, consumer protection, and market competitiveness are creating a more favorable environment for insurance companies to operate and innovate in the GCC 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.