Motor Vehicle Insurance - Taiwan | Statista Market Forecast

The Motor Vehicle Insurance market market in Taiwan is expected to witness significant growth in the coming years.
According to projections, the market size, measured by the gross written premium, is estimated to reach US$4.56bn in 2024.
This indicates a substantial market potential for insurance providers operating in the country.
Furthermore, the average spending per capita in the Motor Vehicle Insurance market market is projected to amount to US$190.40 in 2024.
This suggests that individuals in Taiwan are willing to invest in insurance coverage for their vehicles, highlighting the importance and demand for Motor Vehicle Insurance market.
Looking ahead, the gross written premium is anticipated to exhibit an annual growth rate of 5.39% from 2024 to 2029, resulting in a market volume of US$5.93bn by 2029.
This growth rate indicates a positive outlook for the industry, with insurance providers expected to experience increased business opportunities in the coming years.
In global comparison, it is worth noting that the United States is expected to generate the highest gross written premium in 2024, amounting to US$341.6bn.
This highlights the dominance of the US market in terms of Motor Vehicle Insurance market and signifies the scale of the industry on a global scale.
Overall, the Motor Vehicle Insurance market in Taiwan presents a promising landscape for insurers, with projected growth in market size and per capita spending.
As the industry continues to evolve, insurance providers should strategically position themselves to capitalize on these opportunities.
Taiwan's motor vehicle insurance market is experiencing a surge in demand due to the country's high car ownership rate and increasing traffic congestion.

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

Taiwan's Motor Vehicle Insurance market is experiencing steady growth and evolution in response to changing customer preferences and local special circumstances.

Customer preferences: Customers in Taiwan are increasingly looking for comprehensive motor vehicle insurance coverage that not only protects their vehicles but also offers additional benefits such as roadside assistance and coverage for natural disasters. This shift towards more inclusive insurance packages is driving insurance providers to offer more diverse and tailored products to meet the evolving needs of consumers.

Trends in the market: One notable trend in the Taiwan market is the rising popularity of usage-based insurance, where premiums are based on individual driving behavior. This trend is gaining traction as customers seek more personalized insurance solutions and insurers leverage telematics technology to collect data on driving habits. Additionally, the market is seeing increased competition among insurers, leading to competitive pricing and innovative offerings to attract and retain customers.

Local special circumstances: Taiwan's unique geographical location makes it prone to natural disasters such as typhoons and earthquakes. As a result, there is a growing demand for insurance coverage that specifically addresses the risks associated with these events. Insurers in Taiwan are adapting their products to provide comprehensive coverage for natural disasters, offering peace of mind to customers in the face of potential threats.

Underlying macroeconomic factors: The overall economic stability and growth in Taiwan are also influencing the Motor Vehicle Insurance market. As the economy continues to expand, more individuals are purchasing vehicles, leading to an increased demand for insurance coverage. Additionally, favorable government regulations and initiatives are supporting the growth of the insurance sector, creating a conducive environment for both insurers and customers in the market.

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.