Driving Assurance: Navigating the Vehicle Insurance Market Accelerated by a Solid 10% CAGR | Generali, GEICO, Bajaj Finserv

Increasing vehicle sales are expected to augment the growth of the vehicle insurance market over the forecast period. Growing disposable incomes and easier financing options have been driving the sales of vehicles globally. According to OICA, around 77.6 million vehicles were sold in 2021 across the world. Moreover, rising safety awareness among customers regarding the financial and legal risks has been bolstering the demand for vehicle insurance policies. Many countries have made vehicle insurance mandatory for vehicle owners to drive legally on roads. Stringent regulations and norms associated with insurance are anticipated to further support the insurance industry's growth. However, the advent of self-driving vehicles may challenge the growth of the market.

Global vehicle insurance market is estimated to be valued at US$ 993.88 billion in 2024 and is expected to reach US$ 1,729.64 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.

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Increasing vehicle ownership is a key driver for vehicle insurance market growth

One of the major drivers for the growth of vehicle insurance market is the rapid increase in vehicle ownership across the world. As economies develop and household incomes rise, more people are able to afford personal vehicles like cars and bikes. This has led to a surge in the number of vehicles on the road. For example, in countries like US, China and India, vehicle ownership has almost doubled in the last decade alone. With more vehicles comes more risk of accidents and damages. This has compelled governments in many countries to make vehicle insurance mandatory. As a result, millions more vehicles need to be insured every year, driving significant growth of this market. Even in developing economies, vehicle insurance penetration is rising steadily as mandatory insurance policies are enforced. Overall, the growing vehicle fleet size globally acts as a strong catalyst for the rising demand in the vehicle insurance industry.

Key Company Profiles:

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

This Report lets you identify the opportunities in Vehicle Insurance Market by means of a region:

⦿ North America (the United States, Canada, and Mexico)
⦿ Europe (Germany, UK, France, Italy, Russia and Turkey, etc.)
⦿ Asia-Pacific (China, Japan, Korea, India, Australia, and Southeast Asia (Indonesia, Thailand, Philippines, Malaysia, and Vietnam))
⦿ South America (Brazil etc.)
⦿ The Middle East and Africa (North Africa and GCC Countries)

Economic uncertainty is a market restraint

While the vehicle insurance market enjoys strong growth drivers, economic uncertainty in major markets poses a risk. During periods of economic slowdown and recession, discretionary spending declines as household incomes shrink. This sometimes discourages spending on non-mandatory insurance covers by price-sensitive customers. Similarly, rising inflation also restricts budget for insurance among middle-income groups. The ongoing COVID-19 pandemic induced global economic crisis is a great example. Lockdowns caused job losses and pay cuts for millions. As a result, some motorists decided to reduce covers or renew only mandatory minimum covers to save money. Similarly, weak consumer sentiment and concerns around employment security during a recession translate to lower demand for comprehensive insurance policies. For vehicle insurers who rely on cross-selling add-on products, economic headwinds pose challenges. Overall, macroeconomic fluctuations act as a restraint on the market's growth trajectory.

Usage-based insurance presents a major opportunity

One of the key opportunities for growth in the vehicle insurance market is the rapid adoption of usage-based insurance solutions globally. UBI models that track real-time vehicle usage data through telematics are fast gaining traction. It offers numerous advantages to customers by making premium prices reflect their true risk profiles. Low-mileage users and those with safer driving habits end up saving significantly compared to traditional policies. For insurers as well, UBI allows better risk assessment, lower loss ratios and scope for customized premiums based on driving behavior. It also prevents overhead costs of investigating claims. The convenience of on-demand coverage through mobile apps further improves customer experience. With advances in telematics and AI analytics, more insurers are transitioning towards UBI models. Its win-win structure for customers and insurers indicates huge growth potential in the long-run. Widespread adoption of UBI represents one of the biggest opportunities for the vehicle insurance market players going forward.

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Research Scope

Scope - Highlights, Trends, Insights. Attractiveness, Forecast


Market Sizing - Product Type, End User, Offering Type, Technology, Region, Country, Others


Market Dynamics - Vehicle Insurance Market Segmentation, Demand and Supply, Bargaining Power of Buyers and Sellers, Drivers, Restraints, Opportunities, Threat Analysis, Impact Analysis, Porters 5 Forces, Ansoff Analysis, Supply Chain


Business Framework - Case Studies, Regulatory Landscape, Pricing, Policies and Regulations, New Product Launches. M&As, Recent Developments


Competitive Landscape - Vehicle Insurance Market Share Analysis, Market Leaders, Emerging Players, Vendor Benchmarking, Developmental Strategy Benchmarking, PESTLE Analysis, Value Chain Analysis
Key questions answered in the report include:

ᗒ How Vehicle Insurance Market industry market will boom in 2024?

ᗒ which are prominent key players will be growing the market?

ᗒ Which enterprise size accounted for the largest data center colocation market share?

ᗒ What is the Compound Annual Growth Rate(CAGR) of the market during the forecast period (2024-2031)?

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