Motor Vehicle Insurance - New Zealand

The Motor Vehicle Insurance market market in New Zealand is projected to reach a market size (gross written premium) of NZ US$2.64bn in 2024.
On average, each person in New Zealand is expected to spend NZ US$501.00 on Motor Vehicle Insurance market in 2024.
The gross written premium is projected to grow at an annual rate of 0.50% (CAGR 2024-2029), resulting in a market volume of NZ US$2.71bn by 2029.
In comparison to other countries, the United States is expected to generate the highest gross written premium of US$341.6bn in 2024.
New Zealand's motor vehicle insurance market is experiencing a surge in demand due to the country's high rate of car ownership and desire for comprehensive 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

The Motor Vehicle Insurance market in New Zealand is experiencing significant growth and evolution.

Customer preferences: Customers in New Zealand are increasingly looking for comprehensive motor vehicle insurance coverage that not only protects their vehicles against accidents and theft but also offers additional benefits such as roadside assistance and coverage for natural disasters. With a growing awareness of the importance of insurance protection, customers are willing to invest in policies that provide extensive coverage for their vehicles.

Trends in the market: One notable trend in the New Zealand Motor Vehicle Insurance market is the rise of usage-based insurance. Insurers are leveraging telematics technology to offer more personalized insurance premiums based on individual driving behavior. This trend not only allows insurers to better assess risk but also encourages safer driving habits among policyholders. Additionally, there is a growing demand for online insurance platforms, making it easier for customers to compare policies and make informed decisions.

Local special circumstances: In New Zealand, the geographic landscape and weather conditions play a significant role in shaping the Motor Vehicle Insurance market. The country's diverse terrain, including mountainous regions and coastal areas, can increase the risk of accidents and vehicle damage. As a result, insurers in New Zealand may offer specialized coverage options to address these specific risks, such as coverage for off-road driving or flood damage.

Underlying macroeconomic factors: The overall economic stability and growth in New Zealand are also contributing to the development of the Motor Vehicle Insurance market. As the economy expands and disposable incomes rise, more individuals are purchasing vehicles, leading to an increased demand for insurance coverage. Additionally, regulatory changes and advancements in insurance technology are further driving the growth of the market, creating a competitive landscape where insurers are constantly innovating to meet customer needs.

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.