Surging incidence rate of vehicle theft and road accidents have significantly driven the automotive insurance market. Market Research Future (MRFR)'s latest report on the global motor insurance market has identified the megatrends as well as micro-economic factors affecting the growth of the market. MRFR has projected a CAGR of 4.4% in the automotive insurance market over the forecast period of 2019-2024.
Strengthening of multiple economies has led to more and more cars hitting the road. Increase in vehicle ownership has directly impacted the automotive insurance market. Elevation in the level of awareness among consumers regarding minimization of legal and financial risks associated with car theft or accidents has led to the increased adoption of insurance among vehicle owners.
Both the automotive as well as the insurance sector, in general, are subject to strict monitoring. Multiple governments mandate insuring vehicles in the event of new car purchase. Besides, various attractive offered provided by insurance companies also lure consumers, which are expected to push the automotive insurance market further.
The availability of telematics devices and ubiquity of smartphones has prompted automotive insurers to experiment with usage-based insurance. The emergence of various automotive insurance applications has provided fuel for the growth of the automotive insurance market. Such applications help in actual tracking of driving and offer discounts and rewards for safe driving. Such initiatives also help to encourage consumers for safe driving. Discounts and offers act as incentives for users to keep such apps running. Automotive OEMs venturing into the insurance space, generally known as OEM captive finance, is likely to push the automotive insurance market further.
Sustained growth in mature markets along with a greater share of emerging markets is expected to fare well for the growth of the market. Growth in emerging markets is primarily driven by the continued expansion of the Chinese insurance market. Regulatory changes along with a rebound in LatAm, Central, and Eastern Europe and Africa. Furthermore, improvement in interest policies is expected to reflect positively on the automotive insurance market.
On the contrary, the proliferation of autonomous cars is anticipated to deter the growth of the automotive car insurance market. Autonomous cars reduce accident rates and shift liability from drivers to manufacturers, which is a major impediment to the market growth. Additionally, motor fellets, car-sharing, and driverless taxis are also anticipated to result in reduced car ownership which will ultimately constrain the growth of the automotive insurance market.
The global automotive insurance market has been segmented based on vehicle type, insurance type.
By vehicle type, the automotive insurance market has been segmented into passenger cars, light commercial vehicle (LCV), and heavy commercial vehicle (HCV).
By insurance type, the automotive insurance market has been segmented into third-party, comprehensive, third-party theft and fire, and others.
By region, the automotive vehicle insurance market has been segmented into North America, Rest-of-the-World (RoW), Europe, and Asia Pacific (APAC).
The APAC automotive insurance market accounts for the maximum share of the global automotive insurance market. Economic upturn along with increasing purchasing power in the region has driven the sales of the vehicle significantly which translates into accelerated growth within the automotive insurance market. Additionally, the presence of several automotive insurance providers has created a conducive environment for the growth of the market.
Economy recovery in Europe has created favorable grounds for the growth of the automotive insurance market. Heightened sales of light commercial vehicles are anticipated to boost the growth of the North America automotive insurance market.
Clements Worldwide (US), Zhongan Insurance (China), CPIC (China), RAC Motoring Services (UK), ABIC Inc. (China), Progressive Casualty Insurance Company (US), Zurich Insurance Group (Switzerland), RSA Insurance Group plc (UK), Allstate Insurance Company (US), NFU Mutual (UK), State Farm Mutual Automobile Insurance Company (US), and GEICO (US) are the key players in the automotive insurance market.