Motor Insurance Market Share

Global Motor Insurance Market Overview

Motor Insurance Market Size was valued at USD 828.2 Billion in 2022. The motor insurance market industry is projected to grow from USD 865.52 Billion in 2023 to USD 1230.865 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.50% during the forecast period (2023 - 2032).  The global motor insurance industry is expected to develop due to several market drivers, including an increase in accidents, strict government regulations requiring motor insurance, and an increase in automobile sales worldwide.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Motor Insurance Market Trends

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  Growing number of vehicles on the road is driving the market growth

  
  

The market for motor insurance is anticipated to develop in the future due to the rise in the number of vehicles on the road. Vehicles used for passenger and cargo transportation on land, including buses, cars, and trucks, are self-propelled vehicles that run on electricity. The primary reason for the rise in demand for motor insurance is the benefits it provides, such as cost coverage for injured parties, lost wages, vehicle repair, medical coverage, and any property damaged in an accident. People purchase motor insurance to protect themselves from financial losses. For instance, in 2021, 11,34,61,353 automobiles were registered in the United States, according to the National Transportation Statistics 2021 report released by the US Department of Transportation, an administrative branch of the federal government of the United States. In 2020, 10,51,43,990 vehicles were registered nationwide, compared to 8,317,363 motorbikes. Additionally, the UK's car manufacturing increased by 7.4% to 69,524 units in November 2022, as per to the Society of Motor Manufacturers and Traders (SMMT), a trade association for motor vehicles located in the United Kingdom. As a result, the market for motor insurance is expanding due to the rise in the number of cars on the road.

In addition, people's ignorance caused collisions and accidents, endangering or harming third parties. Although third party liability insurance covers all property damage caused by the vehicle's owner to any person, even those not covered by the policy, basic insurance does not cover damage to cars. Financial protection is offered by this coverage against injury, death, disability, or property damage to other parties, including pedestrians, drivers, and passengers in other vehicles. But schemes like this one aid in safeguarding other people's interests. In the upcoming years, the motor insurance market will have numerous profitable chances because of all these variables. In order to simplify motor insurance, IRDAI suggested and developed new rules and regulations in 2019. These new rules and regulations require third-party liability coverage to be present at the time of motor insurance purchase and provide some clarity on the subject.

The primary trend that is becoming more and more popular in the motor insurance market is technological innovation. To improve their position in the market, major players in the motor insurance space are implementing cutting-edge technological solutions into their insurance operations. In September 2022, for instance, the technology company XA Group, based in Dubai, introduced Addenda, a blockchain-powered digital platform that will help insurers reconcile their motor vehicle recovery receivables. The company intends to further enhance Addenda by integrating current products into the platform, which will assist Addenda in managing all the significant touch-points in the automobile claims value chain by connecting insurers, brokers, repairers, and customers. Thus, driving the motor insurance market revenue.

Motor Insurance Market Segment Insights

Motor Insurance Coverage Insights

The global motor insurance market segmentation, based on coverage includes Liability Coverage, Collision Coverage, Comprehensive Insurance, and Others. The liability coverage segment dominated the market. The main benefit of this kind of coverage is that it covers any injury or damage to a third party, including death, disability, or property loss. Both the legal and financial requirements are satisfied in the case of third party liability insurance. The possibility of motor accidents causing injury to third parties is one of the primary factors driving up the need for third-party liability insurance.

Motor Insurance Distribution Channel Insights

The global motor insurance market segmentation, based on distribution channel, includes Insurance Agents/Brokers, Direct Response, Banks, and Others. The insurance agents/brokers category generated the most income. The desire for personalized counsel, the intricacy of insurance products, and regulatory modifications are some of the causes propelling the growth of insurance agents and brokers in the motor insurance sector. Agents are crucial when it comes to educating clients, choosing the right coverage, and helping them through insurance choices.

Motor Insurance Vehicle Age Insights

The global motor insurance market segmentation, based on vehicle age, includes New Vehicles and Old Vehicles. The new vehicles category generated the most income driven by variables such as shifting consumer preferences, increased auto sales, and advancements in auto technology. Insurers may alter their policies to permit features like autonomous driving and to incorporate telemetry for more customized coverage.

Motor Insurance Application Insights

The global motor insurance market segmentation, based on application, includes Commercial Vehicle and Personal Vehicle. The personal vehicle category generated the most income. There is a greater need for motor insurance due to the vast number of personal vehicles on the planet. The increasing affordability brought about by convenient financing and easy-to-manage installment plans is driving up demand for personal vehicles, which in turn is driving up demand for motor insurance.

Figure 1: Motor Insurance Market, by Application, 2023 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Motor Insurance Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American motor insurance market area will dominate this market. The presence of large insurance companies, increased consumer awareness of the benefits of motor insurance, high disposable income, growing car demand, and rising middle-class affordability are all contributing factors to the growth of the North American motor insurance market. Additionally, it is projected that growing public knowledge of the advantages of electric vehicles will increase demand for EVs in the future years, which would in turn cause a large increase in the need for motor insurance in North America.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Europe motor insurance market accounts for the second-largest market share. The existence of a regulatory framework in the area is one of the major reasons for the stability of the European motor insurance industry. The existing regulatory framework in the region is crafted to safeguard consumers and promote equitable competition among insurance providers. In order to further consumer protection, financial stability, and market stability within the insurance sector, these legal organizations collaborate with insurance companies. Further, the German motor insurance market held the largest market share, and the UK motor insurance market was the fastest growing market in the European region

The Asia-Pacific Motor Insurance Market is expected to grow at the fastest CAGR from 2023 to 2032 due to the increasing demand for automobiles brought on by rising public infrastructure spending, rapid urbanization, and expanded economic activity. The demand for cars is rising in the area due to the growing middle class and dense population. The motor insurance industry is expanding as a result of the developing countries such as China, where demand for alternative fuel vehicles is growing quickly. China is the world's biggest manufacturer and user of electric cars. Moreover, China’s motor insurance market held the largest market share, and the Indian motor insurance market was the fastest growing market in the Asia-Pacific region.

Motor Insurance Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the motor insurance market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, motor insurance industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global motorcycle insurance industry to benefit clients and increase the market sector. In recent years, the motor insurance industry has offered some of the most significant advantages to medicine. Major players in the motor insurance market are attempting to increase market demand by investing in research and development operations includes State Farm Mutual Automobile Insurance, CHINA PACIFIC INSURANCE CO., Berkshire Hathaway, Inc., Allianz, Allstate Insurance Company, Ping An Insurance (Group) Company of China, Ltd., GEICO, People’s Insurance Company of China, Tokio Marine Holdings, Inc, and Admiral.

The holding firm for insurance is called Tokio Marine Holdings Inc. (Tokio Marine). The company provides both individual and corporate clients with a variety of life and non-life insurance products and services through its subsidiaries. Whole life, annuity, cancer, vehicle, travel, personal injury, medical, property, casualty, and short-term insurance are among the products in its portfolio. It also offers other services like real estate management, investment trust management, and asset management.

A diversified holding company is Berkshire Hathaway Inc. (Berkshire). Through its subsidiaries, Berkshire is primarily involved in the freight rail transportation, insurance and reinsurance, and utility and energy producing and distribution businesses. It provides products for life, health, and accident reinsurance in addition to property and liability insurance and reinsurance. The company runs train networks in North America that service US ports and regions in the Midwest, Southwestern, Western, Pacific Northwest, and Southeast.

Key Companies in the motor insurance market include

• State Farm Mutual Automobile Insurance


• CHINA PACIFIC INSURANCE CO.


• Berkshire Hathaway, Inc.


• Allianz


• Allstate Insurance Company


• Ping An Insurance (Group) Company of China, Ltd.


• GEICO


• People’s Insurance Company of China


• Tokio Marine Holdings, Inc


• Admiral

Motor Insurance Industry Developments

August 2021: AXA S.A., a major insurance provider, has unveiled STeP, a new digital claims solution designed to make clients' motor insurance processes easier. According to AXA, STeP has reduced the amount of time it takes from partner arrangements for repair or salvage to client notice to only a few minutes.

January 2021: For $4 billion, US-based insurance provider Allstate Corporation purchased National General Holdings Corp. The company intends to move forward with its goal of growing its market share in personal lines insurance with this purchase. US-based National General Holdings Corp. is an insurance provider in the motor insurance sector.

Motor Insurance Market Segmentation

Motor Insurance Coverage Outlook

• Liability Coverage


• Collision Coverage


• Comprehensive Insurance


• Others

Motor Insurance Distribution Channel Outlook

• Insurance Agents/Brokers


• Direct Response


• Banks


• Others

Motor Insurance Vehicle Age Outlook

• New Vehicles 


• Old Vehicles

Motor Insurance Application Outlook

• Commercial Vehicle 


• Personal Vehicle

Motor Insurance Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America