Motor Vehicle Insurance - Myanmar

The Motor Vehicle Insurance market market in Myanmar is expected to reach a market size (gross written premium) of US$1.25bn in 2024.
On average, each individual in Myanmar is projected to spend US$22.77 on Motor Vehicle Insurance market in the same year.
The market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 3.88%, resulting in a market volume of US$1.51bn by 2029.
When compared globally, the highest gross written premium is expected to be generated the United States, reaching US$341.6bn in 2024.
Myanmar's motor vehicle insurance market is experiencing rapid growth due to a surge in car ownership and increased awareness of the importance of insurance coverage.

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

Myanmar's Motor Vehicle Insurance market is experiencing a notable shift in customer preferences, trends, and local special circumstances.

Customer preferences: Customers in Myanmar are increasingly seeking comprehensive motor vehicle insurance coverage to protect their vehicles from various risks such as accidents, theft, and natural disasters. This preference for comprehensive coverage reflects a growing awareness among consumers about the importance of financial protection in the event of unforeseen incidents.

Trends in the market: One prominent trend in the Myanmar Motor Vehicle Insurance market is the rising demand for usage-based insurance policies. This trend is driven by advancements in telematics technology, allowing insurance companies to track and assess driver behavior more accurately. As a result, customers who demonstrate safe driving habits are rewarded with lower premiums, incentivizing responsible behavior on the roads.

Local special circumstances: In Myanmar, the Motor Vehicle Insurance market is influenced by the country's unique geographical and infrastructural challenges. The prevalence of road accidents due to poor road conditions and inadequate traffic management systems has led to a higher perceived risk for insurers. As a result, insurance companies in Myanmar may adjust their pricing strategies to account for the increased likelihood of claims in certain areas.

Underlying macroeconomic factors: The development of the Motor Vehicle Insurance market in Myanmar is also shaped by broader macroeconomic factors such as economic growth, regulatory changes, and market competition. As the country continues to experience economic expansion and rising income levels, more individuals are purchasing vehicles, thereby driving the demand for motor vehicle insurance. Additionally, regulatory reforms aimed at enhancing consumer protection and promoting market efficiency are influencing the competitive landscape of the insurance sector in Myanmar.

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.