Motor Vehicle Insurance - Zimbabwe

The Motor Vehicle Insurance market market in Zimbabwe is expected to reach a projected gross written premium of US$553.20m in 2024.
The average spending per capita in this market is estimated to be US$32.50 in the same year.
The gross written premium is anticipated to grow at an annual rate of -0.42% (CAGR 2024-2029), resulting in a market volume of US$541.70m by 2029.
It is worth noting that, in global comparison, the United States is projected to generate the highest gross written premium of US$341.6bn in 2024.
The motor vehicle insurance market in Zimbabwe is witnessing a surge in demand due to an increase in vehicle ownership and a growing awareness of the importance of insurance coverage.

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 Zimbabwe is experiencing significant growth and evolution in recent years. Customer preferences in the Motor Vehicle Insurance market in Zimbabwe are shifting towards more comprehensive coverage options as vehicle ownership increases across the country. Customers are increasingly looking for policies that not only cover damages from accidents but also provide protection against theft and natural disasters. Trends in the market show a rise in the adoption of technology for insurance services, with more companies offering online platforms for policy purchase and claims processing. This trend is driven by the growing tech-savvy population in Zimbabwe seeking convenience and efficiency in their insurance transactions. Local special circumstances in Zimbabwe, such as the improving regulatory environment and the stability in the economy, are contributing to the growth of the Motor Vehicle Insurance market. As the country continues to recover from past economic challenges, more individuals are able to afford vehicles, leading to an increased demand for insurance coverage. Underlying macroeconomic factors, including GDP growth and stability in the financial sector, are also playing a crucial role in the development of the Motor Vehicle Insurance market in Zimbabwe. As the economy continues to improve, more disposable income is available for spending on insurance products, driving the growth of the market. Additionally, the stability in the financial sector is boosting consumer confidence in insurance companies, leading to an increase in policy purchases.

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.