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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Insurance Market”.
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.
Contact
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Techsci Research LLC
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