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Motor Vehicle Insurance - India

India

The Motor Vehicle Insurance market market in India is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is set to reach INR US$11.15bn by 2024.
This indicates a promising future for the insurance sector in the country.
Furthermore, the average spending per capita on Motor Vehicle Insurance market is estimated to be INR US$7.74 in 2024.
This figure demonstrates the importance and increasing awareness of insurance coverage among individuals in India.
Looking ahead, the market is predicted to experience a steady annual growth rate of 2.15%, as measured by the compound annual growth rate (CAGR) from 2024 to 2028.
This growth trajectory is expected to result in a market volume of INR US$12.14bn by 2028, further solidifying the Motor Vehicle Insurance market segment's position in the Indian market.
In a global context, it is noteworthy that the United States is anticipated to generate the highest gross written premium in the Motor Vehicle Insurance market market, amounting to US$1,338.0bn in 2024.
This demonstrates the dominance and scale of the US market in comparison to other countries.
The motor vehicle insurance market in India is witnessing 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 India has been witnessing significant growth and evolution in recent years.

Customer preferences: Customers in India are increasingly valuing comprehensive motor vehicle insurance coverage that not only protects against accidents and theft but also offers additional benefits such as roadside assistance and coverage for natural disasters. There is a growing demand for customized insurance plans that cater to specific needs and preferences of vehicle owners.

Trends in the market: One of the prominent trends in the Indian Motor Vehicle Insurance market is the rise of digital insurance platforms, making it easier for customers to compare different insurance policies and make informed decisions. Additionally, there is a noticeable shift towards usage-based insurance, where premiums are based on individual driving behavior, incentivizing safer driving practices among policyholders.

Local special circumstances: The unique traffic conditions and road infrastructure in India have a significant impact on the Motor Vehicle Insurance market. The high rate of accidents and vehicle thefts in urban areas has led to an increased awareness among consumers about the importance of having robust insurance coverage. Moreover, the regulatory environment in India plays a crucial role in shaping the market dynamics, with frequent updates and reforms influencing product offerings and pricing strategies.

Underlying macroeconomic factors: The overall economic growth and rising disposable incomes in India have contributed to the expansion of the Motor Vehicle Insurance market. As more individuals purchase vehicles, the demand for insurance protection also grows. Furthermore, the increasing focus on financial inclusion and insurance penetration by the government has encouraged more people to invest in motor vehicle insurance policies as a means of financial security.

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.