Motor Insurance Market

Global Motor Insurance Market Size 2024 to 2029

The global motor insurance market is predicted to reach USD 833.82 billion in 2024 and USD 1,259.57 billion by 2029, growing at a CAGR of 8.6% during the forecast period.

Motor insurance covers cars, trucks, motorbikes, and other types of road vehicles. Its major purpose is to provide financial protection against physical damage or bodily injury caused by traffic collisions, as well as the responsibility that may arise as a result of such incidents. Motor insurance may also provide financial protection against car theft and damage caused by incidents other than traffic crashes, such as keying, bad weather, natural catastrophes, and damage caused by colliding with stationary objects.

Global Motor Insurance Market Drivers:

At the global level of the vehicle insurance sector, a vast number of variables support strong market performance. The increased awareness and knowledge of motor insurance among end-users and automobile owners, the use of new technologies in auto insurance products, and the existence of third-party insurance solution providers are some of the major market drivers. These factors are projected to serve as important market trends, accelerating market growth over the forecasted period. The rise in on-demand transportation, the shifting of liability to producers, and the introduction and integration of autonomous solutions that have improved motor safety are some of the primary prospects that can be leveraged to grab a larger market share. Other market opportunities, such as greater asset usage, changes in car ownership models, and improved automobile safety, can also be taken advantage of.

Global Motor Insurance Market Restraints:

One of the most significant limitations is a lack of financial resources to integrate cutting-edge technology into auto insurance products. Another constraint is market participants' failure to adjust to changing market conditions. At the moment, the major competitors are focusing on developing strategic methods to effectively tackle the challenges that the global car insurance business faces.

One of the industry's most significant problems is its changing character. The market is undergoing a transformative upheaval because of the integration of autonomous technologies and the shifting regulatory framework. This has increased the unpredictability of the key companies operating in the market and has impacted the worldwide size of the automobile insurance market.

Impact of COVID-19 on the global motor insurance market:

Motor insurance has been adversely affected the worst by the global epidemic of COVID-19, which has resulted in low automobile sales. Despite its ability to compete in the digital sphere, the car insurance business as a whole continues to be the most impacted. Dealers and offline insurers have been hit the hardest by the outbreak, as there has been no vehicle purchase or sale owing to the lockdown.

GLOBAL MOTOR INSURANCE MARKET REPORT COVERAGE:

This research report on the global motor insurance market has been segmented and sub-segmented based on the vehicle type, coverage type, and region.

Global Motor Insurance Market - By Vehicle Type:

• Passenger Cars

• Light Commercial Vehicles (LCV)

• Heavy Commercial Vehicles (HCV)

The Passenger Cars segment leads the market because of the increasing number of car accidents in the world every year.

Global Motor Insurance Market - By Coverage Type:

• Liability Coverage

• Collision Coverage

• Comprehensive Insurance

• Uninsured Motor Insurance

• Underinsured Motor Insurance

• Medical Payment Coverage

• Personal Injury Protection Insurance

• Gap Insurance

Gap insurance is forecasted to be the fastest-growing segment during the analysis period.

Global Motor Insurance Market – By Region:

• North America

• Asia Pacific

• Europe

• Latin America

• Middle East & Africa

During the forecasted period, the Asia Pacific geographic segment is expected to dominate the worldwide market and significantly impact the growth of the automobile insurance market. A significant increase in automotive sales in Asian nations such as India and China and numerous insurance providers and third-party insurance providers in the region are some of the key reasons for the segment's strong performance.

During the anticipated time, it is also expected that the Middle East, Africa, and South America will fare well. The increase in the number of automobiles on the road might be crucial in bolstering the market segment's global contribution.

Key Market Participants:

1. Allstate (US)

2. Progressive Insurance (US)

3. AXA (France)

4. Zurich Insurance (Switzerland)

5. ICICI Lombard (India)

6. HDFC ERGO (India)

7. Assicurazioni Generali (Italy)

8. RSA Insurance Group (UK)

9. AIA (China)

10. Tata AIG (India/US)

Recent Developments:

• New greenfield oil exploration projects will no longer be underwritten by Zurich Insurance unless effective transition plans are in place. Furthermore, it will not fund Arctic oil and gas exploration and extraction.

• Italian insurer Assicurazioni Generali SpA is trying to boost its interest in Indian nonlife and life insurance joint ventures to 74 percent, while its local partner, Future Group, plans to leave the insurance market. Future Generali India Insurance Co. Ltd. and Future Generali India Life Insurance Co. Ltd. are currently owned by Generali.

• ICICI Lombard, a private general insurance firm, has announced the launch of a cashless and frictionless claims experience for its customers in collaboration with technology startup Medway Technologies. Through MedPay's Connected Care Network, ICICI Lombard policyholders can now access cashless OPD solutions at their local clinic, pharmacy, or diagnostic center (Medpay CCN).

• The first transaction based on blockchain infrastructure was completed by AXA Investment Managers and Societe Generale's digital assets subsidiary, Forge. Using the public blockchain Ethereum, the buy-side institution purchased €3 million worth of EIB bonds in the form of security tokens.