Motor Vehicle Insurance - Madagascar

The projected market size (gross written premium) of the Motor Vehicle Insurance market market in Madagascar is expected to reach US$270.70m in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$8.72 in 2024.
The gross written premium is anticipated to show an annual growth rate (CAGR 2024-2029) of 0.80%, leading to a market volume of US$281.80m by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$341.6bn in 2024.
The motor vehicle insurance market in Madagascar is experiencing a surge in demand due to the increase in car ownership and road 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 Madagascar is experiencing a notable shift in recent years.

Customer preferences: Customers in Madagascar are increasingly valuing comprehensive motor vehicle insurance coverage to protect their assets in the event of accidents or theft. This preference for more extensive coverage is in line with global trends where individuals are becoming more risk-averse and seeking greater financial protection.

Trends in the market: One prominent trend in the Motor Vehicle Insurance market in Madagascar is the growing demand for usage-based insurance. This innovative approach, which involves pricing premiums based on individual driving behavior, is gaining popularity among tech-savvy consumers looking for more personalized insurance options. Additionally, there is a noticeable increase in the adoption of digital channels for purchasing insurance policies, reflecting a broader shift towards digitalization in the insurance sector.

Local special circumstances: Madagascar's unique geographic and social landscape plays a significant role in shaping the Motor Vehicle Insurance market. The country's diverse terrain and road conditions contribute to a higher frequency of accidents, prompting individuals to seek robust insurance coverage. Moreover, the emerging middle class in Madagascar is driving the demand for motor vehicles, further fueling the growth of the insurance market.

Underlying macroeconomic factors: The economic stability and steady GDP growth in Madagascar are providing a favorable environment for the development of the Motor Vehicle Insurance market. As disposable incomes rise and consumer spending power increases, more individuals are able to afford insurance premiums, driving market expansion. Additionally, regulatory reforms aimed at enhancing transparency and consumer protection are contributing to the overall growth and competitiveness of the insurance sector in the country.

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.