Motor Insurance Global Market Report 2024

The motor insurance market size has grown strongly in recent years. It will grow from $805.91 billion in 2023 to $881.47 billion in 2024 at a compound annual growth rate (CAGR) of 9.4%. The growth observed during the historical period can be attributed to factors such as the growth in vehicle ownership, regulatory mandates, urbanization, traffic density, and considerations for risk mitigation and financial security, along with lending and financing requirements.

The motor insurance market size is expected to see strong growth in the next few years. It will grow to $1261.92 billion in 2028 at a compound annual growth rate (CAGR) of 9.4%. Forecasted growth is fueled by technological integration in telematics, the rise of electric and autonomous vehicles, a focus on environmental sustainability, data analytics, and the shift towards on-demand and usage-based insurance. Key trends include emphasis on sustainability, biometric authentication, personalized premiums based on behavioral data, regulatory compliance, and customer-centric insurtech innovations.

The anticipated surge in the motor insurance market is attributed to the escalating number of automobiles on the road. As the prevalence of self-propelled vehicles such as cars, buses, and trucks continues to rise, there is a growing demand for auto insurance among individuals seeking financial protection. Motor insurance provides comprehensive coverage, encompassing benefits such as cost coverage for injuries, medical expenses, lost wages, vehicle repair, and property damage resulting from accidents. This heightened demand is exemplified by data from the National Transportation Statistics 2021 report by the U.S. Department of Transportation, revealing 113,461,353 registered vehicles in the USA in 2021, with 105,143,990 automobiles and 8,317,363 motorcycles in 2020. Furthermore, a November 2022 report from the UK-based Society of Motor Manufacturers and Traders (SMMT) indicates a 7.4% year-on-year increase in the UK's car production, reaching 69,524 units. In essence, the escalating number of automobiles on the road is a significant catalyst propelling the growth of the motor insurance market.

The anticipated growth in the motor insurance market is closely tied to the increasing occurrence of traffic accidents. Traffic accidents, involving collisions or incidents with vehicles on roads, often lead to property damage, injuries, or even fatalities. These events result from various factors such as human error, vehicle malfunctions, and adverse road or weather conditions. Significantly, traffic accidents serve as the foundation for insurance claims and coverage within the motor insurance sector. Motor insurance plays a vital role in providing financial protection for damages and injuries arising from these accidents, covering expenses such as vehicle repairs, medical bills, and liability costs. As illustrated by the UK Government's annual report on road casualties in June 2023, there were 1,633 reported fatalities in road collisions in Great Britain, indicating a 9% decrease from the previous year's figures. While there was a 2% decline in fatalities from 2019 to 2022, the report also highlights 29,742 killed or seriously injured (KSI) casualties, down 3% from 2019, and 135,480 casualties of all severities, reflecting a 12% decline from 2019. This data underscores the correlation between the rise in traffic accidents and the consequential growth in the motor insurance market.

The dominant trend in the motor insurance market revolves around technological advancements, with major companies actively integrating advanced solutions into their insurance operations to enhance their market positioning. A case in point is XA Group, a technology company based in Dubai, which introduced Addenda, a digital platform leveraging blockchain technology. Launched in September 2022, Addenda is designed to facilitate the reconciliation of motor vehicle recovery receivables for insurers. XA Group aims to optimize the platform by ensuring it effectively manages crucial touchpoints in the automotive claims value chain, fostering connectivity among insurers, brokers, repairers, and customers. The company's strategy involves integrating existing products into the Addenda platform to further enhance its capabilities. This reflects a broader industry shift toward leveraging technology to streamline processes and improve overall efficiency within the motor insurance sector.

Prominent companies in the motor insurance market are actively innovating by introducing products such as pay-per-mile car insurance, also known as usage-based insurance. This innovative model allows drivers to pay a low monthly base rate along with a per-mile rate for the distance they drive. This approach is specifically tailored to benefit low-mileage drivers, providing a cost-effective alternative for individuals who don't use their vehicles frequently. A noteworthy example is Qualitas Compania de Seguros, a Mexico-based auto insurance company. In April 2023, Qualitas implemented Octo's driving behavior analytics for its commercial fleet insurance. This utilization of technology enables fleet owners to track vehicles, offer customers precise logistics information, and improve driver safety by leveraging real-time telematics data. The adoption of usage-based insurance and the integration of driving behavior analytics reflect the industry's commitment to leveraging innovation for more personalized, efficient, and data-driven insurance solutions.

In January 2021, The Allstate Corporation, a prominent U.S.-based insurance company, successfully completed the acquisition of National General Holdings Corp for a total sum of $4 billion. This strategic transaction aligns with The Allstate Corporation's overarching goal of expanding its market share in personal lines insurance. National General Holdings Corp., a U.S.-based insurance firm specializing in the motor insurance market, now becomes an integral part of The Allstate Corporation's portfolio. Through this acquisition, The Allstate Corporation aims to enhance its competitive position and further solidify its presence in the personal lines insurance sector.

Major companies operating in the motor insurance market report are Berkshire Hathaway Inc., Ping An Insurance (Group) Company of China, Ltd., Allianz SE, AXA S.A., Generali Group, State Farm Mutual Automobile Insurance Company, The People's Insurance Company Group of China Limited, MetLife, Inc., China Pacific Insurance (Group) Co., Ltd., Prudential Financial, Inc., American International Group, Inc., Tokio Marine Holdings Inc., The Allstate Corporation, The Progressive Corporation, Nationwide Mutual Insurance Company, Zurich Insurance Group Ltd, Travelers Companies Inc., United Services Automobile Association, Government Employees Insurance Company, Aegon N.V., Aviva plc, Assicurazioni Generali S.p.A., American Family Insurance Group, Farmers Insurance Group of Companies, The New India Assurance Company Limited, Munich Reinsurance Company, Reliance General Insurance Company Limited, Universal Sompo General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Liberty Mutual Insurance Companies.

North America was the largest region in the motor insurance market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global motor insurance market during the forecast period. The regions covered in the motor insurance market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the motor insurance market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The principal categories of motor insurance encompass treaty reinsurance and facultative reinsurance. Treaty reinsurance involves an insurance company purchasing coverage from another insurer, typically encompassing an entire policy grouping or a comprehensive motor insurance package. Various policy types fall under this umbrella, including liability insurance, comprehensive coverage, collision coverage, and personal injury protection. This form of reinsurance is instrumental in safeguarding both new and older vehicles, spanning a diverse range of vehicle types, such as passenger cars, light commercial vehicles (LCV), and heavy commercial vehicles (HCV). Treaty reinsurance provides a robust mechanism for automotive coverage across a spectrum of vehicles and associated risks.

The motor insurance market research report is one of a series of new reports that provides motor insurance market statistics, including motor insurance industry global market size, regional shares, competitors with a motor insurance market share, detailed motor insurance market segments, market trends and opportunities, and any further data you may need to thrive in the motor insurance industry. This motor insurance market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The motor insurance market includes revenues earned by entities by providing fully comprehensive insurance, third-party insurance, and theft insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.