Auto Insurance Market to Grow with a CAGR of 8.44% through 2030
The
global auto insurance market is expanding due to rising vehicle ownership,
digitalization, telematics adoption, and usage-based insurance models drive
growth, enhancing customer engagement and risk assessment
According to
TechSci Research report, “Auto Insurance Market - Global Industry Size,
Share, Trends, Competition Forecast & Opportunities, 2030F”, the Global Auto Insurance Market was
valued at USD 941.57 billion in 2024 and is expected to reach USD 1,526. 07
billion by 2030 with a CAGR of 8.44% during the forecast period. The global
auto insurance market is a critical component of the broader insurance
industry, providing financial protection against vehicle-related risks,
including accidents, theft, and third-party liabilities. With rising vehicle
ownership worldwide, the demand for auto insurance continues to grow, driven by
regulatory mandates, technological advancements, and evolving consumer
expectations. Strict government regulations in many countries make auto
insurance mandatory, ensuring sustained demand.
Furthermore,
the increasing adoption of electric and autonomous vehicles has reshaped
insurance policy structures, requiring insurers to adapt their offerings to
cover new types of risks. Additionally, the rise of telematics and usage-based
insurance (UBI) has transformed premium calculation models, allowing insurers
to assess risk based on real-time driving behavior rather than traditional
demographic factors. This shift has led to more personalized and cost-effective
policies, benefiting both insurers and policyholders.
One
of the primary drivers of the global auto insurance market is the continuous
rise in vehicle sales, particularly in emerging economies. As disposable
incomes increase and urbanization expands, more individuals and businesses are
investing in personal and commercial vehicles, subsequently driving the demand
for insurance coverage. Additionally, strict regulatory frameworks worldwide
mandate at least basic third-party liability coverage, ensuring a steady influx
of policyholders.
Another
significant driver is the integration of advanced technologies in the insurance
sector. The use of artificial intelligence (AI), big data analytics, and
machine learning has enhanced risk assessment, fraud detection, and claims
management, leading to improved efficiency and profitability for insurers.
Moreover, insurers are increasingly leveraging blockchain technology to enhance
transparency and streamline transactions, reducing fraud and operational costs.
Despite
its growth, the global auto insurance market faces several challenges that
impact its profitability and sustainability. One of the major challenges is the
rising cost of claims due to increasing vehicle repair expenses, medical costs,
and fraudulent claims. Advanced vehicle technologies, while improving safety,
have made repairs more expensive, driving up claim payouts. Fraud remains
another significant challenge, with fraudulent claims and staged accidents
costing the industry billions of dollars annually.
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"Global Auto Insurance Market”
The Auto
Insurance Market is segmented into coverage, vehicle type, provider and region.
Based on provider,
Insurance agents and brokers are the fastest-growing segment in the global auto
insurance market, driven by increasing consumer demand for personalized
services and expert guidance. As policies become more complex with telematics,
usage-based insurance, and digital platforms, agents and brokers play a crucial
role in helping customers navigate options. The rise of digital brokerage
platforms and AI-powered tools enhances efficiency, allowing agents to provide
tailored recommendations. Additionally, their ability to compare multiple
insurers and offer customized solutions boosts customer trust and policy sales.
With evolving insurance needs, agents and brokers remain essential in driving
market growth and customer engagement.
Based
on region, the Asia Pacific region is the fastest-growing segment in the global
auto insurance market, driven by rising vehicle ownership, economic expansion,
and increasing urbanization. Countries like China and India are experiencing
rapid motorization, boosting demand for insurance coverage. Government
regulations mandating auto insurance further contribute to market growth.
Additionally, the adoption of digital platforms and telematics-based policies
enhances customer accessibility and engagement. The region's expanding middle
class and growing disposable incomes are also fueling insurance penetration. As
technological advancements and regulatory frameworks evolve, the Asia Pacific
auto insurance market is poised for significant expansion in the coming years.
Major companies
operating in the global Auto Insurance Market are:
- Allianz SE
- Allstate Insurance Company
- Admiral Group Plc
- China Pacific Insurance (Group) Co., Ltd.
- Ping An Insurance (Group) Company of China, Ltd
- Zurich Insurance Company Ltd
- AXA SA
- Property and Casualty Company Limited (PICC)
- Tokio Marine Holdings, Inc.
- GEICO General Insurance Company
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“Several trends are shaping the global
auto insurance market, influencing how policies are underwritten, priced, and
managed. Usage-based insurance (UBI) is gaining popularity, where insurers use
telematics devices or mobile apps to monitor driving behavior and adjust
premiums accordingly. This trend benefits safe drivers with lower premiums
while encouraging responsible driving habits. The rise of digital insurance
platforms has also transformed customer interactions, making policy purchases,
renewals, and claims filing more accessible and efficient. AI-powered chatbots
and automated claims processing have enhanced customer experience, reducing
response times and administrative burdens. Another emerging trend is the
growing demand for cybersecurity coverage as connected cars and IoT-enabled
vehicles become more common. As cyber threats increase, insurers are developing
specialized policies to protect against hacking and data breaches related to
vehicle systems, “Said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based management consulting firm.
“Auto Insurance Market –
Global Industry Size, Share, Trends, Opportunity, and Forecast, By Coverage
(Third-Party Liability Coverage, Collision/Comprehensive/ Other Optional
Coverage), By Vehicle Type (New Vehicle, Used Vehicle), By Provider (Insurance
Companies, Insurance Agents/Brokers, Others), By Region & Competition,
2020-2030F”, has evaluated the future growth potential of global
Auto 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 Auto Insurance
Market.
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