Motor Vehicle Insurance - Romania

The Motor Vehicle Insurance market market in Romania is projected to reach a market size (gross written premium) of US$1.00bn in 2024.
The average spending per capita in the Motor Vehicle Insurance market market is expected to amount to US$51.15 in 2024.
The gross written premium is projected to show an annual growth rate (CAGR 2024-2029) of -1.15%, resulting in a market volume of US$947.30m by 2029.
In global comparison, the United States is expected to generate the highest gross written premium of US$341.6bn in 2024.
Romania's motor vehicle insurance market is witnessing a growing demand for comprehensive coverage due to increasing traffic congestion 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 Romania is experiencing steady growth and evolution driven by various factors.

Customer preferences: Customers in Romania are increasingly seeking comprehensive motor vehicle insurance coverage to protect their vehicles from potential risks and uncertainties. With the rising number of vehicles on the road, there is a growing awareness among consumers about the importance of having adequate insurance coverage to safeguard their assets.

Trends in the market: One notable trend in the Romanian Motor Vehicle Insurance market is the shift towards digitalization and online insurance services. Insurers are leveraging technology to offer convenient and efficient solutions to customers, such as online policy purchase, claims processing, and customer support. This trend is not only enhancing the overall customer experience but also improving operational efficiency for insurance companies.

Local special circumstances: In Romania, the Motor Vehicle Insurance market is influenced by regulatory changes and market competition. The introduction of new regulations and policies by the government plays a significant role in shaping the insurance landscape. Moreover, the presence of both domestic and international insurance companies in the market intensifies competition, leading to product innovation and competitive pricing strategies to attract and retain customers.

Underlying macroeconomic factors: The growth of the Motor Vehicle Insurance market in Romania is also influenced by macroeconomic factors such as economic stability, income levels, and consumer confidence. As the economy continues to expand and disposable incomes rise, more individuals are able to afford vehicles, thereby increasing the demand for motor vehicle insurance. Additionally, favorable economic conditions contribute to higher vehicle sales and registrations, further driving the growth of the insurance market. Overall, the Motor Vehicle Insurance market in Romania is characterized by evolving customer preferences, technological advancements, regulatory dynamics, and macroeconomic factors that collectively shape the market landscape and drive its development.

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.