Motor Vehicle Insurance - Papua New Guinea

The Motor Vehicle Insurance market market in Papua New Guinea is expected to reach a projected market size (gross written premium) of US$384.50m in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$36.56 in 2024.
It is anticipated that the gross written premium will exhibit an annual growth rate (CAGR 2024-2029) of 1.91%, leading to a market volume of US$422.50m by 2029.
In comparison to other countries globally, the United States is projected to generate the highest gross written premium of US$341.6bn in 2024.
Papua New Guinea's motor vehicle insurance market is experiencing a surge in demand due to the country's growing urbanization and increasing number of vehicles on the road.

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 Papua New Guinea is experiencing steady growth and development.

Customer preferences: Customers in Papua New Guinea are increasingly seeking comprehensive motor vehicle insurance coverage to protect their assets in the event of accidents or theft. The demand for policies that offer a wide range of benefits, such as coverage for third-party liabilities and natural disasters, is on the rise. Additionally, there is a growing interest in add-on features like roadside assistance and personal accident coverage to enhance the overall protection provided by insurance policies.

Trends in the market: One noticeable trend in the Papua New Guinea motor vehicle insurance market is the shift towards digital platforms for purchasing and managing insurance policies. Insurers are leveraging technology to streamline the process of buying insurance, filing claims, and accessing policy information. This trend is not only improving customer convenience but also increasing market penetration as more individuals opt for motor vehicle insurance.

Local special circumstances: In Papua New Guinea, the challenging road infrastructure and high incidence of road accidents have contributed to the importance of motor vehicle insurance. The country's diverse geography and varying weather conditions also play a significant role in shaping insurance preferences. Customers often look for policies that provide coverage for specific risks associated with driving in Papua New Guinea, such as landslides, floods, and damage from unpaved roads.

Underlying macroeconomic factors: The economic growth and increasing disposable income levels in Papua New Guinea are driving the demand for motor vehicles, subsequently boosting the motor vehicle insurance market. As more people purchase cars and other vehicles, the need for insurance coverage naturally grows. Additionally, regulatory changes and government initiatives to promote insurance awareness and compliance are influencing the market dynamics 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.