Motor Insurance Market Share, Growth, and Size | 2031
The Motor Insurance Market size is expected to grow from US$ 848.71 billion in 2023 to US$ 1678.74 billion by 2031; it is anticipated to expand at a CAGR of 8.9% from 2023 to 2031. Factors such as increasing motor ownership and increasing automotive sales are driving the motor insurance market growth.
Motor Insurance Market Analysis
The motor insurance market is expected to witness significant growth due to the adoption of advanced technologies such as telematics and artificial intelligence. Telematics technology, which involves the use of devices to monitor driving behavior, is expected to play a crucial role in personalized insurance offerings and risk assessment. Artificial intelligence and machine learning algorithms can help insurers automate claims processing, fraud detection, and customer service, leading to improved efficiency and customer experience. Insurers are increasingly focusing on enhancing the customer experience by providing seamless digital services and personalized offerings. The rise of Insurtech startups and partnerships between traditional insurers and technology companies are driving innovation in the industry. Improved customer engagement through mobile apps, online claims processing, and 24/7 customer support is expected to be a key area of focus.
Motor Insurance Market Overview
- Motor insurance, also known as vehicle insurance or auto insurance, is a type of insurance policy that provides coverage for motor vehicles such as cars, motorcycles, trucks, and commercial vehicles. It is a mandatory policy in many countries to protect the general public from any accidents that might occur on the road.
- Usage-based insurance (UBI) is gaining popularity, allowing insurers to offer personalized premiums based on individual driving behavior. UBI utilizes telematics data to track factors such as mileage, speed, and driving patterns, enabling insurers to offer discounts to safe drivers. These motor insurance market trends provide an opportunity for insurers to attract customers by offering flexible and customized insurance plans.
- The growing adoption of electric vehicles (EVs) presents new opportunities and challenges for the motor insurance industry. Insurers will need to develop specialized insurance products and risk assessment models for EVs, considering factors such as battery life, charging infrastructure, and repair costs. This shift towards EVs opens up avenues for insurers to provide innovative coverage options and attract environmentally conscious customers.
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Motor Insurance Market: Strategic Insights
Market Size Value in US$ 848.71 billion in 2023 Market Size Value by US$ 1678.74 billion by 2031 Growth rate CAGR of 8.9% from 2023 to 2031 Forecast Period 2023-2031 Base Year 2023
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Motor Insurance Market: Strategic Insights
| Market Size Value in | US$ 848.71 billion in 2023 |
| Market Size Value by | US$ 1678.74 billion by 2031 |
| Growth rate | CAGR of 8.9% from 2023 to 2031 |
| Forecast Period | 2023-2031 |
| Base Year | 2023 |
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Motor Insurance Market Drivers and Opportunities
Rising Number of Accidents to Drive the Motor Insurance Market
- The motor insurance market growth is influenced by various driving factors that contribute to the determination of auto insurance rates. One significant factor is the increasing number of crashes, traffic collisions, and accidents. These incidents play a vital role in shaping insurance prices as they result in claims and potential financial losses for insurers. The rise in accidents can be attributed to several reasons, including distracted driving, such as texting or talking on the phone while driving, which has become a prevalent issue in many cities.
- Additionally, the location of the insured vehicle also affects insurance rates, with higher premiums often seen in large metropolitan areas where disposable income is higher. Motor insurance provides coverage for various aspects, including the cost of injured individuals, medical expenses, lost wages, vehicle repairs, and property damage resulting from accidents. As a result, people are increasingly adopting auto insurance to protect themselves from potential financial losses, leading to an increased demand for motor insurance in the market.
Motor Insurance Market Report Segmentation Analysis
- Based on coverage, the market is segmented into liability coverage, collision coverage, comprehensive insurance, and others. The liability coverage segment is expected to hold a substantial motor insurance market share in 2023.
- Liability coverage is a fundamental component of motor insurance that provides financial protection to the insured party in the event they cause damage to someone else's property or injure another person. It is typically a mandatory requirement in most states and provinces. Liability coverage helps cover the costs of property repairs, medical expenses, legal fees, and other related damages resulting from an accident for which the insured is at fault. The specific coverage limits and details may vary depending on the insurance policy and jurisdiction.
Motor Insurance Market Regional Analysis
The scope of the market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is experiencing rapid growth and is anticipated to hold a significant motor insurance market share. The market in North America is a significant and dynamic industry that provides coverage for automobiles and vehicles. This market is characterized by a wide range of insurance providers offering various policies to cater to the diverse needs of consumers. In North America, motor insurance is mandatory in most states and provinces, ensuring that drivers have financial protection in the event of accidents, property damage, or bodily injury. The market is highly competitive, with numerous insurance companies competing to attract customers through competitive pricing, coverage options, and additional benefits. Factors such as population growth, urbanization, and an increase in vehicle ownership contribute to the steady growth of the market in North America.
Motor Insurance Market Report Scope
The "Motor Insurance Market Analysis" was carried out based on coverage, vehicle type, application, and geography. In terms of coverage, the market is segmented into liability coverage, collision coverage, comprehensive insurance, and others. Based on vehicle type, the market is segmented into passenger cars, light commercial vehicles, and heavy commercial vehicles. Based on application, the market is segmented into personal motor insurance and commercial motor insurance. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Motor Insurance Market News and Recent Developments
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the market. The motor insurance market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases. A few recent key market developments are listed below:
- In March 2024, State Farm, one of the largest insurers, experienced substantial financial losses in 2023 after withdrawing from the California homeowners' market. Despite an increase in policy numbers for its property and casualty insurance companies, State Farm encountered underwriting losses due to high claims severity and significant catastrophe events impacting both auto and homeowners' insurance sectors.
[Source: State Farm, Company Website]
Motor Insurance Market Report Coverage & Deliverables
The market report on “Motor Insurance Market Size and Forecast (2021–2031)”, provides a detailed analysis of the market covering below areas: -
- Market size & forecast at global, regional, and country- level for all the key market segments covered under the scope.
- Market dynamics such as drivers, restraints, and key opportunities.
- Key future trends.
- Detailed PEST & SWOT analysis
- Global and regional market analysis covering key market trends, key players, regulations, and recent market developments.
- Industry landscape and competition analysis covering market concentration, heat map analysis, key players, and recent developments.
- Detailed company profiles.
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Coverage, Vehicle Type, Application, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The key players holding majority shares in the market are Admiral Group plc; Allianz; Allstate Insurance Company; GEICO; and ICICI Lombard.
The market is expected to reach US$ 1678.74 billion by 2031.
The market was estimated to be US$ 848.71 billion in 2023 and is expected to grow at a CAGR of 8.9% during the forecast period 2023 - 2031.
Integration of telematics and AI technologies is anticipated to play a significant role in the market in the coming years.
The rising number of accidents and increasing motor ownership are the major factors that propel the market.
- Admiral Group plc
- Allianz
- Allstate Insurance Company
- GEICO
- ICICI Lombard
- Liberty Mutual Insurance
- Permanent General Companies, Inc.
- Progressive Casualty Insurance Company
- State Farm Mutual Automobile Insurance Company
- Tokio Marine Holdings, Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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