Market Insights Financial Insurances Non-life insurances

Motor Vehicle Insurance - Mozambique

Mozambique

The Motor Vehicle Insurance market market in Mozambique is expected to witness significant growth in the coming years.
By 2024, the market size, measured by gross written premium, is projected to reach US$0.49bn.
This indicates a positive trend in terms of insurance coverage for vehicles in the country.
Furthermore, the average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$13.99 in 2024.
This figure highlights the individual expenditure on insurance premiums, showcasing the importance placed on protecting vehicles and mitigating risks associated with them.
Looking ahead, the market is anticipated to experience a steady annual growth rate of 1.50% between 2024 and 2028.
This growth rate, known as the Compound Annual Growth Rate (CAGR), is expected to result in a market volume of US$0.52bn by 2028.
This indicates a positive trajectory for the Motor Vehicle Insurance market market in Mozambique, with an increasing number of individuals recognizing the importance of insuring their vehicles.
In comparison to other countries, the United States is expected to generate the highest gross written premium in 2024, reaching an impressive US$1,338.0bn.
This figure demonstrates the scale and significance of the Motor Vehicle Insurance market market the United States, underscoring its dominance in the global insurance industry.
Overall, the Motor Vehicle Insurance market market in Mozambique is poised for growth, with the projected increase in market size and the average spending per capita.
As individuals become more aware of the importance of insurance coverage for their vehicles, the market is expected to expand and contribute to the overall development of the insurance sector in the country.
Motor Vehicle Insurance in Mozambique is experiencing a surge in demand due to the increasing number of vehicles on the road.

Market

Region

Region comparison

Currency

Analyst Opinion

The Motor Vehicle Insurance market in Mozambique is witnessing significant growth and transformation.

Customer preferences: Customers in Mozambique are increasingly looking for comprehensive motor vehicle insurance coverage to protect their assets in the event of accidents or theft. They prefer insurance policies that offer a wide range of benefits and services, including quick claims processing and roadside assistance.

Trends in the market: One notable trend in the Mozambican Motor Vehicle Insurance market is the rising demand for usage-based insurance, where premiums are based on the actual usage of the vehicle. This trend is driven by advancements in telematics technology, allowing insurance companies to track driving behavior and tailor insurance plans accordingly. Moreover, there is a growing interest in online insurance purchases, making it more convenient for customers to compare different policies and select the most suitable one.

Local special circumstances: Mozambique's Motor Vehicle Insurance market is also influenced by local factors such as the increasing number of vehicles on the road due to economic growth and urbanization. This has led to a higher demand for insurance coverage, especially among middle-class individuals who own cars and want to safeguard their investments. Additionally, the regulatory environment in Mozambique plays a crucial role in shaping the insurance market, with the government implementing policies to ensure the financial stability of insurance companies and protect consumers.

Underlying macroeconomic factors: The development of the Motor Vehicle Insurance market in Mozambique is closely linked to the country's overall economic performance. As the economy continues to grow and incomes rise, more people can afford to purchase vehicles and, subsequently, insurance coverage. Additionally, factors such as population growth, infrastructure development, and urbanization contribute to the expansion of the insurance market as more individuals seek to protect their vehicles and mitigate risks associated with accidents and theft.

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.