The global motor insurance market is expected to $806.40 billion in 2023 at a compound annual growth rate (CAGR) of 9.2 percent.
The motor insurance market is expected to grow from $738.65 billion in 2022 to $1,122.41 billion in 2027 at a CAGR of 8.6%.
Major players in the motor insurance market are Allianz SE, State Farm Insurance, AXA, Zurich Insurance, Allstate Corporation, GEICO, Ping An Insurance Company of China Ltd., HDFC ERGO, Universal Sompo General Insurance Company Limited, The Progressive Corporation, Tokio Marine Holdings Inc., Reliance General Insurance Company, Assicurazioni Generali, The People’s Insurance Company of China Ltd., MetLife Inc., Aegon NV, and The New India Assurance Co. Ltd
The major types of motor insurance are treaty reinsurance and facultative reinsurance. Treaty reinsurance refers to insurance purchased from another insurer by an insurance company and it usually includes an entire policy grouping or motor insurance package for automotive coverage. Major types of policies are liability insurance, comprehensive coverage, collision coverage, and personal injury protection. It used to protect both new and old vehicles, which includes various types of vehicles such as passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV).
Technological advancements have emerged as the major trend gaining popularity in the motor insurance market. Major companies operating in the motor insurance market are incorporating technologically advanced solutions in insurance operations to strengthen their position in the market. For instance, in September 2022, XA Group, a Dubai-based technology company, launched Addenda, a digital platform powered by blockchain that will enable insurers to reconcile motor vehicle recovery receivables. In order to help Addenda manage all the important touchpoints in the automotive claims value chain by connecting insurers, brokers, repairers, and customers, the business hopes to further improve Addenda by integrating existing products into the platform.
In January 2021, The Allstate Corporation, a US-based insurance company, acquired National General Holdings Corp for an amount of $4 billion. With this acquisition, the company plans to advance its strategy of increasing personal lines insurance market share. National General Holdings Corp. is a US-based insurance company operating in the motor insurance market.
North America was the largest region in the motor insurance market in 2022. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the motor insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the motor insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
The increase in the number of automobiles on the road is expected to propel the growth of the motor insurance market going forward. Automobiles such as cars, buses, and trucks, are self-propelled vehicles that use a power source for propulsion and are used to transport passengers and goods on land.
People are buying auto insurance to protect themselves from financial losses, which ultimately fuels the demand for motor insurance and is prominently attributed to the benefits offered by motor insurance, which include cost coverage for an injured person, medical coverage, lost wages, vehicle repair, and any property damaged in an accident.
For instance, according to the National Transportation Statistics 2021 report published by the US Department of Transportation, an executive department of the U.S. federal government, in 2021, 11,34,61,353 vehicles were registered in the USA. In 2020, automobiles accounted for 10,51,43,990, while 8,317,363 motorcycles were registered across the nation.
Furthermore, in November 2022, according to the Society of Motor Manufacturers and Traders (SMMT), a UK-based trade association of motor vehicles, the UK’s car production had risen by 7.4% to 69,524 units as compared to the previous year. Therefore, the increase in the number of automobiles on the road is driving the growth of the motor insurance market.