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Motor Vehicle Insurance - Kyrgyzstan

Kyrgyzstan

In Kyrgyzstan, the Motor Vehicle Insurance market market is projected to reach a market size (gross written premium) of US$0.38bn in 2024.
The average spending per capita in this market is estimated to be US$56.13 in the same year.
It is expected that the gross written premium will experience an annual growth rate (CAGR 2024-2028) of 2.53%, leading to a market volume of US$0.42bn by 2028.
When compared globally, the United States is anticipated to generate the highest gross written premium of US$1,338.0bn in 2024.
The motor vehicle insurance market in Kyrgyzstan is witnessing a surge in demand due to the increasing number of vehicles on the roads.

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Analyst Opinion

The Motor Vehicle Insurance market in Kyrgyzstan is experiencing steady growth and evolution. Customer preferences in the Motor Vehicle Insurance market in Kyrgyzstan are shifting towards comprehensive coverage that not only protects against accidents but also includes additional benefits such as roadside assistance and coverage for theft and natural disasters. Trends in the market show an increase in demand for usage-based insurance policies, where premiums are calculated based on individual driving habits and behaviors. This trend is driven by the growing adoption of telematics devices and the desire for more personalized insurance solutions. Local special circumstances in Kyrgyzstan, such as the high rate of road accidents and the increasing number of vehicles on the road, are contributing to the growth of the Motor Vehicle Insurance market. As the number of cars on the road continues to rise, the need for insurance coverage also increases, creating opportunities for insurance providers to expand their offerings. Underlying macroeconomic factors, including economic growth and rising disposable incomes, are fueling the demand for Motor Vehicle Insurance in Kyrgyzstan. As the economy strengthens and more individuals are able to afford vehicles, the need for insurance protection becomes more pronounced, driving market growth. Additionally, regulatory changes and advancements in technology are shaping the insurance landscape in the country, making it more dynamic and competitive.

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.