Vehicle Insurance Market Size to Worth Around US$ 1500 Bn by 2030
Precedence Research
6 min read
Precedence Research
According to Precedence Research, the global vehicle insurance market size is projected to worth around US$ 1500 billion by 2030 and growing at a noteworthy CAGR of 7.38% from 2022 to 2030.
Ottawa, May 27, 2022 (GLOBE NEWSWIRE) -- The global vehicle insurance market size was surpassed at US$ 790 billion in 2021. The rising demand for the vehicles for transportation across the globe is expected to boost the growth of the global vehicle insurance market. The rising disposable income, improved living standards, growing penetration of various vehicle types and brands, rising affordability of the consumers, and rising economic activities are some of the most prominent factors that are boosting the demand for the vehicles and hence the demand for the vehicle insurance is expected to significantly during the forecast period. The vehicle insurances offer financial protection against any damage to the vehicle or damage to a third party. The rising penetration of the top vehicle insurance providers and rising consumer awareness regarding the benefits of vehicle insurance is boosting the growth of the global vehicle insurance market.
Moreover, the government mandates over the necessity of vehicle insurances is further boosting the demand for the vehicle insurances. The rising popularity of the online insurance aggregators is positively contributing towards the growth of the global vehicle insurance market. Furthermore, the rising government initiatives to promote the adoption of the latest electric vehicles is augmenting the demand for the EVs across the globe, which is expected to be one of the most important drivers of the vehicle insurance market during the forecast period.
Report Highlights
Based on the coverage, the comprehensive coverage is expected to be the fastest-growing segment. It not only covers the damages or loss to the third-party but also provides financial assistance to the policy holder in case of his/her vehicle damage. This is a major advantage of the comprehensive coverage over its third party coverage counterpart. This is expected to boost its demand in the forthcoming years.
Based on application, the personal vehicle segment dominated the market. The rising demand for the personal vehicles across the globe and huge adoption of the vehicle insurance policies has led to the growth of this segment. The increased consumer awareness regarding the benefits of the vehicle insurance has led to the growth of this segment.
PEOPLE’S INSURANCE COMPANY OF CHINA, CHINA PACIFIC INSURANCE CO., ALLIANZ, STATE FARM MUTUAL, AUTOMOBILE INSURANCE, GEICO, PING AN INSURANCE (GROUP) COMPANY OF CHINA, LTD., ADMIRAL GROUP PLC, BERKSHIRE HATHAWAY INC.
Regional Snapshot
North America was the leading vehicle insurance market in 2021. The high demand for vehicles among the consumers owing to the improved living standards, higher affordability, and high demand for luxurious products is a major factor behind the increased demands for the vehicle insurance. The rising sales of the electric vehicles is expected to foster the demand for the vehicle insurance policies during the forecast period. The presence of several top insurance providers in the region has great contributions in the growth of the market. The growing adoption of online channels for buying vehicle insurances is boosting the growth of the North America vehicle insurance market.
Asia Pacific is expected to witness the highest CAGR during the forecast period. The demand for the vehicle insurance is expected to rise owing to the rising cases of road traffic accidents. According to the World Health Organization, about 93% of the road accidents occur in low and middle income countries. The huge demand for the electric vehicles in China and the regulatory mandates of having vehicle insurance in India are the most prominent drivers of the Asia Pacific vehicle insurance market.
Market Dynamics
Driver
Growing demand for the electric vehicles
The rising concerns over greenhouse gas, climate change, and controlling carbon footprint has forced the government to encourage the adoption of the eco-friendlier transport solutions across the globe. The rising consumer awareness regarding the benefits of electric vehicles on the environment is boosting the demand for the electric vehicles, which is expected to bolster the demand for the vehicle insurance during the forecast period. Countries like Canada, Thailand, Japan, and India are offering subsidies to the consumers for buying EVs.
Restraint
Low penetration of vehicle insurance
There is a very low penetration of vehicle insurance policies in several developing economies. Accordingto the Insurance Information Bureau (IIB), around 6.5 to 7 crore vehicles have insurance coverage against 18 crore registered vehicles in India. Therefore, the low adoption of vehicle insurance is expected to restrain the market growth during the forecast period.
Opportunity
Growing adoption of online channels to buy insurance
With the advent of the digital technologies, the emergence of online insurance aggregators like Policybazaar has gained a rapid traction among the consumers. The online channels are a popular medium of buying and renewing vehicle insurance policies in the developed economies and it is an emerging trend in the developing economies. This is expected to offer lucrative growth opportunities to the market players in the forthcoming future.
The consumers sometimes faces difficulties while claiming insurance policies. The complex procedures and delays in the process due to improper settlement policies are the major challenges for the market players that restricts the consumers to opt for the vehicle insurance policies.
Recent Developments
In August 2021, AXA S.A launcheditslatest digital claims solution,STeP that aimed to simplify the processes involved in vehicle insurance.
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