Press Release

Motor Insurance Market to Grow with a CAGR of 8.53% Globally through 2028

The rise of digital motor insurance and increasing awareness of the importance of motor insurance are factors driving the global motor insurance market in the forecast period 2024-2028.

 

According to TechSci Research report, “Global Motor Insurance Market - Industry Size, Share, Trends, Competition Forecast & Opportunities, 2028”, the Global Motor Insurance Market stood at USD 768.50 billion in 2022 and is anticipated to grow with a CAGR of 8.53% in the forecast period, 2024-2028. Global motor insurance is a critical sector within the insurance industry that provides coverage for various types of vehicles, including cars, motorcycles, and commercial vehicles, across the world. It plays a crucial role in mitigating financial risks associated with accidents, theft, and damage to vehicles. This industry is continuously evolving, influenced by factors such as technological advancements, regulatory changes, and shifting consumer preferences. Key trends include the adoption of telematics and usage-based insurance, the emergence of insurtech, a focus on sustainability and eco-friendly initiatives, and growing concerns about data privacy and cybersecurity. Global motor insurance remains a dynamic and essential segment of the insurance landscape.

 

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One of the most notable trends in global motor insurance is the rise of telematics and usage-based insurance (UBI). Telematics involves the use of advanced technology, such as GPS and sensors, to monitor and record data about a vehicle's performance and the driver's behavior. UBI takes this a step further by using this data to determine insurance premiums. The information collected includes driving habits, speed, braking patterns, and even the time of day a vehicle is in use. By assessing risk based on actual behavior rather than general demographics, UBI allows insurers to provide more accurate and personalized coverage. Safe drivers are rewarded with lower premiums, creating incentives for responsible driving and ultimately contributing to safer roads.

The advent of UBI is also helping insurers combat fraudulent claims. With real-time data available from the monitored vehicles, insurers can verify the circumstances of an accident or claim, reducing the opportunities for fraud. Moreover, UBI encourages drivers to take greater responsibility for their actions behind the wheel, leading to fewer accidents and reduced claims costs. This benefits both insurers and policyholders by stabilizing premiums and promoting safer driving practices.

Another significant trend in global motor insurance is the disruptive force of insurtech companies. These innovative startups leverage technology to streamline insurance processes, enhance customer experiences, and develop new products. The digital distribution of insurance policies through online platforms and mobile apps is becoming increasingly common, providing consumers with convenience and transparency. Customers can easily obtain quotes, purchase policies, file claims, and make policy adjustments using these digital channels. Furthermore, insurtech companies are incorporating artificial intelligence (AI) and machine learning into underwriting and claims processing, allowing for faster and more accurate decision-making. These advanced algorithms analyze vast datasets to assess risk, price policies, and process claims, ultimately improving efficiency and reducing operational costs.

However, the traditional insurance industry is not standing still. Established insurers are recognizing the value of insurtech innovations and are increasingly partnering with these startups to drive digital transformation. These collaborations aim to incorporate innovative technologies into their existing operations, delivering enhanced customer experiences while remaining competitive in an evolving market.

The global Motor Insurance market is segmented into vehicles type, user, policy type, provider, regional distribution, and company.

Based on user, the market is segmented into personal motor insurance, commercial motor insurance.

Personal motor insurance represents the fastest-growing segment in the global motor insurance industry. This surge in growth is driven by several factors, including rising vehicle ownership worldwide, increased awareness of the need for comprehensive coverage, and evolving consumer preferences. Insurers are adapting to these trends by offering innovative policies, such as usage-based insurance and digital platforms for convenient access. Moreover, the proliferation of electric and hybrid vehicles is contributing to this growth, as these vehicles often require specialized coverage. With a focus on tailored offerings and enhanced customer experiences, personal motor insurance is poised to continue its rapid expansion within the global motor insurance market.

 

Major companies operating in Global Motor Insurance Market are:

  • Allianz SE
  • Assicurazioni Generali
  • Bajaj Finserv
  • PICC Property & Casualty Co Ltd
  • AXA SA
  • GEICO
  • AllState
  • Ping An Insurance
  • State Farm
  • Zurich AG

 

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“Global motor insurance is experiencing a transformative phase shaped by numerous factors. Technological advancements are enabling telematics and usage-based insurance, providing personalized coverage based on driving behavior. Digital distribution channels and insurtech innovations are reshaping how policies are purchased and managed. Sustainability initiatives, including discounts for eco-friendly vehicles and climate risk assessments, are gaining prominence. Data privacy and cybersecurity concerns are driving investments in safeguarding customer information. As electric and autonomous vehicles rise, insurers are adapting to new risks and coverage requirements. These trends collectively underscore the dynamic and evolving nature of the global motor insurance landscape,” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm.

Motor Insurance Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Vehicle Type (New Vehicles, Old Vehicles), By User (Personal Motor Insurance, Commercial Motor Insurance), By Policy Type (Third Party Motor Insurance, Fire & Theft Motor Insurance, Comprehensive Motor Insurance), By Provider (Insurance Companies, Insurance Agents/Brokers, Others (Insurtech Companies, etc.)), By Region, Competition”, has evaluated the future growth potential of global Motor Insurance market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Motor Insurance market.

 

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Techsci Research LLC

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