According to Fact.MR, a market research and competitive intelligence provider, the global automobile insurance market stands at US$ 813.9 billion in 2022 and is forecasted to surge ahead at a noteworthy CAGR of 7.1% between 2022 and 2032.
The next 10 years for the automobile industry are going to be a very crucial period. The ongoing evolution in the automobile industry will have a direct effect on the overall health of the motor insurance industry. With time, the picture will become clearer about the success rate of the adoption of autonomous cars, which will have the ultimate power to make or break the growth/expansion of the motor insurance industry.
Connected cars will also have a positive impact on the automotive insurance industry. As connected cars will have hundreds of data points being gathered and stored in the system, in case of any insurance fraud, it will help insurance companies in deciding the authenticity of the claims. The rules and regulations are still not very clear about the calculation of insurance premiums for fully autonomous cars, which again, looking at the future, could be a driving factor for market growth in the long run.
Key Takeaways from Market Study
- Global spending on automobile insurance has reached US$ 813.9 billion in 2022.
- The U.S. motor insurance market is expected to grow at a steady CAGR of 5.8%.
- During the forecast period, the market in East Asia will grow the fastest at a CAGR of 8.1%, followed by South Asia at 7.9%.
- Brokers still hold the largest market share of over 40%.
- Premiums paid by private vehicle owners contribute almost 70% to the total premiums.
The automobile insurance market has witnessed several mergers and acquisitions by large players over the last few years.
- In June 2021, Progressive Casualty Insurance Company completed the acquisition of Protective Insurance Corporation for a value of US$ 330 million.
The industry has also gained the attention of private investors, especially in emerging economies.
- In October 2021, Acko, an online portal for general insurance, raised US$ 255 million at a valuation of US$ 1.1 billion. The investor list comprises of General Atlantic, Canada Pension Plan Investment Board, and Lightspeed Growth, among others.
Automobile Insurance Automobile insurance is a type of insurance coverage that provides financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise from incidents in a vehicle. It is sometimes also referred to as car insurance, motor insurance, or auto insurance. In most jurisdictions, automobile insurance is compulsory for all drivers. The specific terms of automobile insurance vary with legal regulations in each region. Automobile insurance policies generally cover a driver for liability for bodily injury or property damage to third parties. Other common coverages include: personal injury protection, uninsured/underinsured motorist, medical payments, collision, comprehensive, and gap insurance.