Two-Wheeler/Motorcycles Insurance - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)

The two-Wheeler/Motorcycles insurance market size in terms of premium value is expected to increase from USD 126.60 billion in 2025 to USD 134.31 billion in 2026 and reach USD 180.55 billion by 2031, growing at a CAGR of 6.09% over 2026-2031. This report is Segmented by Policy Type (Third Party, Comprehensive, Collision and More), Distribution Channel (Direct To Customer, Intermediated, and Embedded), Vehicle Propulsion (Internal Combustion, Electric) and Region (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Global Two-Wheeler/Motorcycles Insurance Market Trends and Insights

Mandatory insurance requirements & rising two-wheeler parc

Indonesia’s Financial Services Authority (OJK) has made third-party liability compulsory for all motor vehicles from January 2025, instantly expanding the addressable base for carriers. Similar frameworks in Thailand and India consolidate a predictable premium pool, enabling insurers to allocate capital to product innovation and digital outreach. Motorbike density in congested megacities continues to climb, reinforcing steady policy growth as commuters seek agile mobility and regulators pursue safer roads. In India, opening the insurance sector to 100% foreign direct investment attracts global expertise and capital. Collectively, these levers underpin a stable growth runway for the two-wheeler/motorcycle insurance market.

Escalating repair/medical costs

Modern two-wheelers increasingly feature sensors, connectivity modules, and advanced safety electronics. Component complexity drives parts inflation well above headline CPI, while technician shortages lengthen repair cycles. LexisNexis reported 35% and 40% jumps in bodily injury and collision severity, respectively, trends that filter directly into motorcycle claims. Concurrently, medical cost inflation amplifies loss ratios, giving carriers a strong rationale to refine underwriting granularity and push telematics-based incentives for safer riding. These pressures also encourage closer collaboration between insurers and OEMs to monitor vehicle health and rider behavior in real time. As claims costs mount, actuarial models are being recalibrated to better reflect the risk dynamics of digitally enhanced motorcycles.

Complex multi-jurisdiction regulation & solvency rules

Capital models vary widely across continents, compelling global insurers to maintain parallel compliance regimes. The NAIC’s 2025 risk-based capital framework revision in the United States adds extra reporting layers. Concurrently, Europe’s Solvency II update forces asset-liability adjustments, while the UAE shifts oversight to its central bank. Smaller players face the stiffest overhead, limiting their expansion bandwidth. These divergent regulatory landscapes increase administrative costs and complicate cross-border capital allocation. Larger insurers may absorb these costs through scale, but mid-sized players often struggle to justify new market entries. Additionally, misaligned solvency ratios across jurisdictions can distort reinsurance structures and delay group-level risk transfer. Regulatory harmonization remains limited, prompting insurers to rely heavily on localized compliance teams and specialized legal counsel.

Other drivers and restraints analyzed in the detailed report include:

• Rapid motorcycle sales growth in Asia-Pacific and South America
• Usage-based/telematics premium models
• Rising climate-related catastrophe losses

Segment Analysis

Third-party liability remained the backbone of the two-wheeler/motorcycle insurance market in 2025, owning 54.86% revenue share as statutory mandates fuel compulsory take-up. Comprehensive policies, however, are forecast to log a 6.15% CAGR, the quickest among all policy classes, as rising household income and higher-value electric bikes encourage riders to protect their assets fully. The two-wheeler/motorcycle insurance market size for comprehensive coverage is projected to widen significantly between 2026 and 2031, benefiting carriers with diversified product suites. Collision and specialty add-ons, such as gap or battery warranty coverage, cater to niche needs, especially in urban centers where parking accidents and theft remain prevalent.

Growing comprehensive adoption also mirrors technological progress in claims handling. Allianz has embedded generative AI across nearly 400 use cases to shorten settlement cycles, making broad coverage more palatable to cost-conscious riders. Electric bike owners are particularly receptive, as battery packs can represent more than half of vehicle value; a standalone battery replacement endorsement is therefore fast becoming a standard feature in comprehensive bundles.

Complete Report Scope:

• By Policy Type
  • Third-Party Liability
  • Collision
  • Comprehensive
  • Others
• By Distribution Channel
  • Direct-to-Consumer (DTC)
  • Intermediated (includes agents, brokers, bancassurance, and other traditional third-party channels)
  • Embedded (insurance sold as an add-on within another purchase journey)
• By Vehicle Propulsion
  • Internal-Combustion Two-Wheelers
  • Electric Two-Wheelers
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Peru
    • Chile
    • Argentina
    • Rest of South America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • BENELUX (Belgium, Netherlands, and Luxembourg)
    • Nordics (Sweden, Norway, Denmark, Finland)
    • Rest of Europe
  • Asia-Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • South East Asia
    • Indonesia
    • Rest of Asia-Pacific
  • Middle East & Africa
    • United Arab Emirates
    • Saudi Arabia
    • South Africa
    • Rest of Middle East & Africa

Geography Analysis

Asia Pacific delivered 38.12% of global premiums in 2025 and is tracking a 5.34% CAGR to 2031 as regulators standardize compulsory insurance and urban commuters favor two-wheelers for cost-efficient mobility. India’s 100% foreign direct investment allowance already spurred Zurich’s USD 670 million purchase of a majority stake in Kotak General Insurance, highlighting capital inflow momentum. Indonesia’s mandate is expected to formalize millions of riders, broadening the two-wheeler/motorcycle insurance market base across ASEAN.

North America is mature but remains technology-driven. Carriers dominate UBI penetration; LexisNexis estimates that over 68% of U.S. insurers see telematics as a decisive competitive lever. Progressive’s data-centric model helped lift its motor share to 16.73% in 2024, showing that even saturated markets permit share shifts through analytics excellence. However, wildfire-related losses in the West and hurricane clusters in the Gulf continue to inject volatility into combined ratios.

Europe’s market benefits from capital efficiency under Solvency II. Allianz reported EUR 44.8 billion in property-and-casualty volume for H1 2024, up 7.3%, confirming disciplined rate adequacy. Electric mobility regulations in Germany, France and the Nordics foster electric bike penetration, broadening policy demand. Conversely, Brexit-related licensing adjustments moderately raise frictional costs for U.K. domiciled underwriters active in continental territories.

South America and the Middle East & Africa remain under-penetrated but attractive. Telecom-linked micro-insurance pilots in Brazil and Nigeria demonstrate how mobile wallets can distribute low-ticket premium products, bringing first-time policyholders into the two wheeler/motorcycle insurance market. Regulatory modernization, including solvency reforms in the Gulf, is expected to unlock cross-border capacity and facilitate product transfers from mature markets.

List of Companies Covered in this Report:

• Progressive
• GEICO
• State Farm
• Allstate
• Farmers
• Bajaj Allianz
• ICICI Lombard
• ACKO
• Tata AIG
• Aviva
• AXA
• Allianz SE
• Zurich Insurance
• QBE
• Ping An
• PICC
• Tokio Marine
• Sompo Japan
• Suncorp
• MAPFRE
• Lemonade

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support