Motor Vehicle Insurance - Worldwide

The Motor Vehicle Insurance market market worldwide is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is estimated to reach a staggering US$926.30bn by 2024.
This indicates a substantial market potential for insurers operating in this segment.
In terms of average spending per capita, individuals are anticipated to spend approximately US$119.50 on Motor Vehicle Insurance market in 2024.
This figure highlights the financial commitment people are willing to make to protect their vehicles against potential risks and accidents.
Furthermore, the market is predicted to experience a steady annual growth rate, with a compound annual growth rate (CAGR) of 1.50% between 2024 and 2029.
This growth trajectory is expected to drive the market volume to reach an impressive US$997.70bn by 2029.
When comparing the global market, it is noteworthy that the United States is expected to generate the highest gross written premium.
The projected figure for 2024 is a whopping US$341.6bn, indicating the significant size and importance of the Motor Vehicle Insurance market market the United States.
Overall, the Motor Vehicle Insurance market market is poised for substantial growth worldwide, with the United States leading the way in terms of gross written premium.
This market segment presents promising opportunities for insurers to expand their operations and cater to the evolving needs of vehicle owners.
Despite the global economic downturn, the demand for motor vehicle insurance in countries with a high population density like India continues to rise due to increased vehicle ownership and 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

The Motor Vehicle Insurance market is experiencing dynamic changes across different regions.

Customer preferences: Customers are increasingly seeking comprehensive motor vehicle insurance coverage to protect their assets in case of accidents or theft. They are also looking for customizable plans that suit their specific needs, such as coverage for natural disasters or roadside assistance.

Trends in the market: In Europe, there is a growing trend towards usage-based insurance, where premiums are based on individual driving behavior. This incentivizes safer driving practices and allows insurance companies to more accurately assess risk. In Asia, particularly in countries with a rising middle class, there is a surge in demand for motor vehicle insurance as more people can afford cars. This has led to increased competition among insurers, driving innovation in policy offerings and pricing strategies.

Local special circumstances: In the United States, the market is heavily influenced by state regulations, leading to variations in insurance requirements and pricing from state to state. This creates a complex landscape for both insurers and customers to navigate. In emerging markets like India, the focus is on increasing insurance penetration among the vast population that owns vehicles. Insurers are adapting by offering affordable and easy-to-understand policies to cater to this market segment.

Underlying macroeconomic factors: Economic stability plays a significant role in the growth of the motor vehicle insurance market. In regions where disposable income is increasing, such as parts of Latin America and Asia, more people are purchasing vehicles and subsequently seeking insurance coverage. On the other hand, economic downturns can lead to a decrease in vehicle sales and insurance purchases, impacting market growth. Additionally, regulatory changes and advancements in technology, such as telematics and artificial intelligence, are shaping the future of motor vehicle insurance worldwide.

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.