Motor Vehicle Insurance - Southeast Asia

The Motor Vehicle Insurance market market in Southeast Asia is projected to reach a market size of US$19.89bn by 2024 in terms of gross written premium.
The average spending per capita in the Motor Vehicle Insurance market market is expected to be US$28.72 in 2024.
With an annual growth rate of 1.43% (CAGR 2024-2029), the gross written premium is forecasted to reach US$21.35bn by 2029.
When compared globally, the United States is expected to generate the highest gross written premium of US$341.6bn in 2024.
In Southeast Asia, the motor vehicle insurance market in Singapore is experiencing a trend towards usage-based insurance policies.

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 Southeast Asia is experiencing significant growth and development.

Customer preferences: Customers in Southeast Asia are increasingly valuing convenience and digital solutions when it comes to purchasing motor vehicle insurance. With the rise of digitalization and smartphone penetration in the region, there is a growing demand for online insurance platforms that offer quick and easy access to insurance products.

Trends in the market: In countries like Singapore, Malaysia, and Thailand, there is a noticeable trend towards usage-based insurance, where premiums are calculated based on individual driving behavior. This personalized approach to pricing is gaining popularity as customers seek more tailored and cost-effective insurance options. Additionally, there is a growing interest in comprehensive coverage that includes not only traditional benefits but also additional services such as roadside assistance and car maintenance.

Local special circumstances: In Indonesia, the largest economy in Southeast Asia, the motor vehicle insurance market is influenced by factors such as a large population, increasing urbanization, and a rising middle class. As more Indonesians purchase cars and motorcycles, the demand for insurance coverage is also on the rise. Moreover, the regulatory environment in Indonesia plays a crucial role in shaping the insurance market, with the government implementing policies to improve insurance penetration and consumer protection.

Underlying macroeconomic factors: The economic growth in Southeast Asia, coupled with rising disposable incomes, is driving the expansion of the motor vehicle insurance market in the region. As more people can afford to own vehicles, there is a corresponding increase in the demand for insurance coverage to protect their assets. Furthermore, the growing awareness of the importance of insurance and risk management is contributing to the overall growth of the market in Southeast Asia.

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.