Motor Vehicle Insurance - Switzerland

The Motor Vehicle Insurance market market in Switzerland is expected to reach a market size (gross written premium) of US$6.82bn in 2024.
On average, individuals in Switzerland are projected to spend US$770.20 per capita on Motor Vehicle Insurance market in the same year.
The market is expected to grow at an annual rate of 1.70% (CAGR 2024-2029), resulting in a market volume of US$7.42bn by 2029.
In comparison to other countries, the United States is anticipated to generate the highest gross written premium in 2024, amounting to US$341.6bn.
Switzerland's motor vehicle insurance market is driven by a high level of customer satisfaction and a strong emphasis on safety and risk management.

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 Switzerland is experiencing steady growth and evolution driven by various factors.

Customer preferences: Swiss customers in the Motor Vehicle Insurance market are increasingly seeking comprehensive coverage options that not only protect their vehicles but also offer additional benefits such as roadside assistance and quick claims processing. There is a growing demand for personalized insurance solutions tailored to individual driving habits and preferences.

Trends in the market: One notable trend in the Swiss Motor Vehicle Insurance market is the rise of telematics-based insurance policies, where premiums are determined based on actual driving behavior. This trend is gaining traction as insurers leverage technology to offer more accurate pricing and incentivize safer driving practices among policyholders. Additionally, there is a noticeable shift towards sustainable and eco-friendly insurance options that promote environmentally conscious driving habits.

Local special circumstances: Switzerland's unique geographical landscape and high standard of living contribute to the specific dynamics of the Motor Vehicle Insurance market. The country's well-maintained road infrastructure and stringent safety regulations result in lower accident rates compared to other regions. As a result, insurers in Switzerland focus on providing value-added services and innovative coverage options to attract and retain customers in a competitive market environment.

Underlying macroeconomic factors: The stable economy and high per capita income in Switzerland play a significant role in shaping the Motor Vehicle Insurance market. With a financially secure consumer base, insurers have the opportunity to offer higher-end insurance products and services that cater to the diverse needs of policyholders. Moreover, the country's strong regulatory framework ensures transparency and reliability in the insurance sector, fostering trust among customers and driving market growth.

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.