April 23, 2024

Vehicle Insurance Market is Trends by Growing Vehicle Usage and Ownership

Vehicle insurance provides coverage for private motor vehicles like cars and motorcycles, and commercial vehicles like trucks and buses. It has become a necessity for drivers as it provides financial security against unforeseen risks.

The global vehicle insurance market is estimated to be valued at US$ 1,729.64 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the vehicle insurance market are People’s Insurance Company of China, Allstate Insurance Company, China Pacific Insurance Co., Allianz, State Farm Mutual, Tokio Marine Group, Automobile Insurance, Geico, Ping An Insurance (Group) Company of China, Ltd., Admiral Group Plc, Berkshire Hathaway Inc., State Farm, Ping An Insurance, Zurich AG, AXA SA, Assicurazioni Generali, GEICO, Bajaj Finserv. Key players are focusing on providing innovative insurance products and services to gain a competitive advantage.

The demand for vehicle insurance is growing due to increasing vehicle usage and ownership globally. According to sources, the total number of registered vehicles is projected to reach 2.6 billion by 2030. This is expected to drive the need for vehicle insurance coverage worldwide.

Due to favorable government policies and initiatives, the Vehicle Insurance Market Size is expanding rapidly in emerging economies. Insurers are focusing on expanding their presence in developing regions of Asia Pacific, Africa, and South America which are expected to become major revenue generators in the coming years.

Market key trends

The demand for pay-as-you-drive insurance is increasing as more insurers are offering policies based on actual mileage. These policies allow customers to pay lower premiums if they drive less. Telematics technology is enabling insurers to track a customer’s driving patterns and customize cover accordingly. The use of emerging technologies like AI, machine learning, and IoT is also a key trend allowing faster claims processing and improved underwriting. Insurers are investing heavily in digital transformation to enhance customer experience.

Porter’s Analysis

Threat of new entrants: Low capital requirements and lack of significant economies of scale limit threat.

Bargaining power of buyers: Buyers have high bargaining power due to heterogeneity of products and availability of substitutes.

Bargaining power of suppliers: Suppliers have low bargaining power due to availability of substitutes and lack of differentiation in products.

Threat of new substitutes: Threat is high due to close substitutes available across various modes of transportation.

Competitive rivalry: Intense competition due to matured market.

Geographical regions with high concentration: North America holds the largest share in vehicle insurance market, with United States being the major market. Asia Pacific is expected to grow at the fastest rate owing to increasing individual incomes and vehicle ownership.

The vehicle insurance market in China is growing at the fastest rate globally. Factors such as rising disposable income, increasing vehicle ownership and mandatory insurance regulations are driving the Chinese vehicle insurance market. Growing penetration of online insurance with innovative products is further fueling the market growth in China.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it