USD 710 billion
Auto Insurance Market Size, Share, Growth Analysis, By Application(Personal, Commercial), By Coverage(Third Party Liability Coverage, Collision/Comprehensive/ Other Optional Coverages), By Vehicle Age(New Vehicle, Used Vehicle), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG40D2012 |
Region:
Global |
Published Date: March, 2024
Pages:
207
|Tables:
87
|Figures:
66
Auto Insurance Market Insights
Global Auto Insurance Market size was valued at USD 710 billion in 2022 and is poised to grow from USD 771.77 billion in 2023 to USD 1504.26 billion by 2031, growing at a CAGR of 8.70% during the forecast period (2024-2031).
Auto insurance constitutes a contractual shield, safeguarding policyholders against financial setbacks arising from accidents or theft. Functioning as a legal pact between the insurer and the policyholder, this arrangement entails the insurance provider pledging to indemnify incurred losses as per policy terms, in exchange for a premium.
Auto insurance serves as a fiscal buffer, shielding individuals from physical harm resulting from traffic collisions and vehicular theft. Moreover, it encompasses expenses stemming from accidents where an insured vehicle owner is accountable for injuries, fatalities, or property impairment inflicted upon other drivers, vehicles, or third-party assets like buildings, fences, or utility structures. Although auto insurance laws vary across jurisdictions, many regions mandate the acquisition of bodily injury and property damage liability coverage prior to operating or maintaining a vehicle on public thoroughfares. Given the escalating occurrence of road-related incidents globally, the vehicle insurance sector presents substantial potential for growth.
The pivotal drivers propelling the global auto insurance market's advancement comprise heightened accident rates, stringent governmental regulations mandating auto insurance acquisition, and an upsurge in worldwide automobile sales attributed to enhanced per capita consumer income. Additionally, the advent of autonomous vehicles has posed challenges to market expansion. Furthermore, the forecasted period may unveil promising prospects for market enlargement due to the infusion of technology into existing product and service portfolios, coupled with an elevated demand for third-party liability coverage in emerging economies.
US Auto Insurance Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Customized Solutions
Fastest Growth
Customized Solutions
Growth Rate
8.70% CAGR
Global Single-Use Assemblies Market ($ Bn)
Country Share for North America Region (%)
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Auto Insurance Market Segmental Analysis
Global Auto Insurance market is segmented on the basis of Coverage, Application, Distribution Channel, Vehicle Age, Region. By Coverage, the market is segmented into Third Party Liability Coverage, Collision/Comprehensive/ Other Optional Coverages. By Application, the market is segmented into Personal, Commercial. By Distribution Channel, the market is segmented into Insurance Agents/Brokers, Direct Response, Banks, Others. By Vehicle Age, the market is segmented into New Vehicle, Used Vehicle. By Region, the market is segmented into North America, Europe, Latin America, Asia- Pacific, Middle East and Africa.
Auto Insurance Market Analysis By Distribution Channel
In terms of distribution channels, the segments encompass insurance agents/brokers, direct response, banks, and other avenues. The direct response category is projected to exhibit notable advancement, with an expected Compound Annual Growth Rate (CAGR) of 10.2%, firmly establishing its position as the predominant contributor. Direct response entails the direct sale of insurance to consumers through channels such as telephone, television, direct mail, and various other mediums. Furthermore, vehicle insurance enterprises are actively exploring novel distribution approaches, focusing on expanding their customer base, and striving to optimize their investment potential. Within this dynamic landscape, numerous collaborations have emerged between auto insurance providers, brokers, online agents (OTAs), and banks. By leveraging intermediaries, insurers and underwriters effectively disseminate their offerings, allowing customers to swiftly access and procure products.
Concurrently, the insurance agents/brokers segment is poised to secure the second-largest market share. An eminent trend within the auto insurance market involves insurance agents and brokers harnessing multiple websites and online platforms to cater to the escalating demand for personalized and tailored services. Additionally, insurance brokers adeptly navigate various insurance providers, skillfully identifying and orchestrating optimal insurance plans for their clients, capitalizing on their comprehensive understanding of risks and the intricacies of the insurance sector.
Auto Insurance Market Analysis By Application
Based on the application, the categories include personal and commercial. The personal segment is projected to make notable progress with an anticipated Compound Annual Growth Rate (CAGR) of 8.4%, securing its position as the dominant market player. Pertaining to personal vehicles, which encompass motor vehicles accommodating up to eight individuals, including the driver, this category has witnessed considerable market expansion due to its heightened cost-effectiveness, improved comfort features, and elevated durability. This segment's expansion is underscored by the surging consumer demand for personal automobiles, resulting in a global upsurge in passenger car production, surpassing that of commercial vehicles.
Conversely, the commercial sector is positioned as the second-largest contributor. Comprising vehicles exclusively purposed for the transportation of goods and materials, these vehicles are distinctively not designed for passenger conveyance. The escalating demand for these vehicles is notably attributed to their integral role in supply chain services spanning diverse industry verticals and the burgeoning landscape of business startups. Furthermore, commercial vehicles frequently serve as personnel carriers for numerous enterprises, thereby necessitating insurance coverage that furnishes financial protection against potential losses and damages.
Global Single-Use Assemblies Market By Solution
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Auto Insurance Market Regional Insights
In the North American region, it is anticipated that the market will be dominated with a projected Compound Annual Growth Rate (CAGR) of 7.5%. The surge in insurance sales can be attributed to the escalating disposable income within the populace. The market's upward trajectory is poised to continue due to ongoing advancements in technology and the persistent focus on research and development in the realm of autonomous vehicles and their safety measures. The increased adoption of auto insurance in this area is also a response to the heightened instances of traffic accidents, collisions, injuries, and property damage. The demand for auto insurance is further poised for elevation due to the upswing in automobile sales and governmental mandates stipulating insurance coverage for all vehicles, consequently propelling market expansion.
Prominent entities like Allstate and Liberty Mutual have a significant presence in this region, serving as an additional impetus for its growth. These leading players offer sophisticated coverage options such as comprehensive, underinsured motorist, and uninsured motorist coverage, thus contributing to the market's expansion. The widespread utilization of automobiles within this geographic zone substantially fosters the advancement of the market. Moreover, the envisaged introduction of stringent governmental regulations pertaining to vehicle safety is anticipated to provide further propulsion to the industry's expansion.
Meanwhile, the Asia Pacific region is poised to hold a substantial market share of USD 441 billion, with an impressive CAGR of 10.4%. The region's rapid growth rate is attributed to burgeoning economies, a substantial middle-class population with increased disposable income, and a surge in car sales. The ascending trajectory of the industry is underpinned by the growing requirement for auto insurance in numerous other nations, including India. Additionally, the prudence of safeguarding one's financial interests in the event of accidents or vehicular damage further augments the appeal of auto insurance.
Global Single-Use Assemblies Market By Geography
- Largest
- Fastest
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Auto Insurance Market Dynamics
Auto Insurance Market Drivers
Growing Vehicle Ownership
- Rising global vehicle ownership, especially in emerging markets, expands the potential customer base for auto insurance, driving market growth.
Emergence of New Vehicle Technologies
- The introduction of reimbursement policies and schemes by governments and healthcare providers for assistive devices, including medical slings, is boosting market growth by making these products more accessible to patients.
Auto Insurance Market Restraints
Economic Uncertainty
- Economic downturns can lead to reduced vehicle sales and ownership, affecting the demand for auto insurance.
Claims Fraud
- Insurance fraud, including staged accidents and false claims, poses a significant challenge, impacting profitability and increasing operational costs.
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Auto Insurance Market Competitive Landscape
The competitive landscape of the global auto insurance market is undergoing a profound transformation driven by technological disruptions, changing consumer behaviors, and regulatory shifts. Traditional insurance giants are facing increased pressure from agile startups that leverage data analytics, artificial intelligence, and digital platforms to offer more personalized and efficient insurance solutions. These newcomers often excel in providing usage-based policies, real-time risk assessment, and seamless claims processing, resonating with tech-savvy customers.
Furthermore, automotive manufacturers are entering the fray by bundling insurance services with vehicle sales, blurring the lines between insurance and product offerings. This approach not only enhances customer convenience but also challenges the dominance of standalone insurers. Additionally, the rise of electric and autonomous vehicles is altering risk profiles, prompting insurers to develop specialized coverage for emerging technologies and their potential liabilities.
In this competitive landscape, customer-centricity is paramount, driving insurers to focus on user experience, transparency, and innovative pricing models. Partnerships between insurers and technology firms are becoming commonplace, fostering a collaborative ecosystem that fosters innovation and accelerates digital transformation.
As the auto insurance market continues to evolve, adaptability and the ability to leverage cutting-edge technologies will be essential for companies to navigate the complex terrain and secure a competitive edge.
Auto Insurance Market Top Player’s Company Profile
- State Farm (United States)
- Geico (United States)
- Progressive (United States)
- Allianz (Germany)
- Berkshire Hathaway (United States)
- Tokio Marine (Japan)
- AXA (France)
- Ping An Insurance (China)
- Zurich Insurance Group (Switzerland)
- Mapfre (Spain)
Auto Insurance Market Recent Developments
- According to insurance behemoth AXA S.A., the launch of STeP, a new digital claims solution, in August 2021 will assist clients in streamlining the motor insurance process. The time between customer notification and partners scheduling repair or salvage, according to AXA, has been slashed to just minutes.
- In May 2021, to simplify its auto claim and repair processes, GEICO is collaborating with AI technology company Tractable. Millions of historical claims have been used to train a patented computer vision technique developed by Tractable. The AI is able to assess vehicle damage based on pictures just like a human assessor would. With the help of Tractable's technology, GEICO hopes to review estimates more quickly and precisely while spending less on overhead.
Auto Insurance Key Market Trends
- Telematics and IoT: The integration of telematics and Internet of Things (IoT) devices allows insurers to gather real-time data on driver behavior and vehicle usage, enabling more accurate risk assessment and usage-based pricing.
- Digital Transformation: Insurers are embracing digital technologies to enhance customer experiences, streamline processes, and offer personalized policies. Online platforms, mobile apps, and AI-driven underwriting are becoming integral to the insurance ecosystem.
Auto Insurance Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global auto insurance market analysis, technological advancements, such as telematics and AI-driven underwriting, have revolutionized policy pricing and risk assessment. Customer preferences are shifting towards personalized coverage and usage-based models, fueling innovation among insurers. Additionally, the rise of electric and autonomous vehicles has prompted insurers to adapt to new risk landscapes and develop specialized products. Competition remains intense, driving insurers to enhance customer experiences through digital platforms and streamlined claims processes. The market is witnessing a gradual transition from traditional ownership to shared mobility, impacting insurance needs. Moreover, sustainability concerns are influencing insurers to explore eco-friendly offerings. As the market continues to adapt to these trends, collaboration between insurers, tech companies, and automotive manufacturers will play a pivotal role in shaping the future of auto insurance.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 710 billion |
| Market size value in 2031 | USD 1504.26 billion |
| Growth Rate | 8.70% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Auto Insurance Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Auto Insurance Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Auto Insurance Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Auto Insurance Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Auto Insurance Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Auto Insurance Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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