Auto Insurance Market Size Worth $1764.9 Billion by 2032 – Increased Auto Sales and Laws Mandating Insurance to Explode Demand

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The global auto insurance market is expanding due to increased accidents, strict government regulations requiring auto insurance, and a global upsurge in car sales. The auto insurance sector dominates the market for non-life insurance. North America emerged as the largest global auto insurance market, with a 41.4% market revenue share in 2022.

Newark, Nov. 15, 2023 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the USD 810.0 billion auto insurance market will reach USD 1764.9 billion by 2032. Customers with auto insurance are financially protected against physical damage from traffic accidents and car theft. It also pays for expenses related to the harm done to another driver, vehicle, or piece of property, like a building, fence, or utility pole, by the insured owner of the car, including death, injuries, and property damage. While state laws governing auto insurance differ, many jurisdictions have made it mandatory to have both property damage and bodily injury liability coverage before using or maintaining a vehicle on public highways. Given the rising rate of traffic accidents in most of the world’s nations, the auto insurance market has a lot of room to develop.

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Key Insights on Auto Insurance Market

North America to account for the largest market size during the forecast period.

North America is expected to have the highest auto insurance market share. During the forecast period, the region will continue dominating the auto insurance market. The presence of major businesses and increased motor vehicle sales are the main factors propelling the market’s growth in this region. Furthermore, the rising number of collisions, injuries, property damage, and traffic accidents in this region has also added to the appeal of auto insurance. Laws requiring insurance for all vehicles and increased auto sales are also expected to drive market expansion and increase demand for auto insurance.

The third-party liability coverage segment dominated the market with the most significant revenue of USD 469.8 billion.

The third-party liability coverage segment dominated the market with the most significant revenue of USD 469.8 billion. Third-party coverage guards against claims of losses and damages incurred by uninsured drivers not covered by the policy.

The direct response segment dominated the market with the most significant revenue of USD 259.2 billion.

The direct response segment dominated the market with the most significant revenue of USD 259.2 billion. Banks, brokers, internet agents (OTAs), and auto insurance companies have several collaborations. Insurers and underwriters distribute their products through their intermediaries, making it feasible for customers to purchase goods directly from the seller, propelling the segment’s growth.

The new vehicles segment dominated the market with the most significant revenue of USD 526.5 billion.

The new vehicles segment dominated the market with the most significant revenue of USD 526.5 billion. A brand-new vehicle has never been registered or owned by anyone but the manufacturer, distributor, or dealer. Furthermore, long-term third-party auto insurance must be obtained by new car buyers and maintained for a minimum of three or five years. Additionally, purchasers who finance new cars benefit from multiple advantages provided by the manufacturer, distributor, or dealer, as they have links to several other market participants.

The personal segment dominated the market with the most significant revenue of USD 477.9 billion.

The personal segment dominated the market with the most significant revenue of USD 477.9 billion. The growing demand for personal vehicles among consumers drives the segment’s expansion. And worldwide production of passenger automobiles has surpassed that of commercial vehicles.

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Market Dynamics:

Drivers: Growing regulatory requirements

Several coverages are included in motor insurance and help to compensate the policyholder’s beneficiaries in the event of their death. To enhance customer experience and maintain a competitive edge in the market in the upcoming years, insurance providers have increased the number of coverages offered in their products. To safeguard consumers against unjust costs that are expected to increase in the upcoming years and to guarantee the financial stability of insurance companies, both the federal and state governments mandated auto insurance at the time of vehicle registration. This factor increases the demand for auto insurance among consumers.

Restraint: Lack of awareness

One of the main factors preventing the auto insurance market from growing is people’s ignorance of and need to understand insurance coverage. The Insurance Information Bureau estimates that only 6.5 to 7 crore of the roughly 18 crore registered cars on Indian roads are insured. The main issue that has to be resolved by closing knowledge gaps in the vehicle insurance industry is consumer experiences with frequent traffic accidents and low uptake of auto insurance.

Opportunity: Growing demand for auto insurance products and services

Companies that provide auto insurance have a great chance to present their products to consumers. Companies provide third-party liability coverage, comprehensive coverage, and medical coverage for property damage and bodily harm. It is expected that insurers would have lucrative opportunities to expand and innovate their product offerings by adding specific coverages, such as pay-as-you-drive insurance. This covers the miles each drive, not the average number of miles a person travels in a year. Additionally, customers can easily select the plans that best fit their needs because these coverages are available in packaged or combination forms. Combining all these factors is expected to present profitable prospects for product expansion in the upcoming years.

Challenge: Data security and privacy concerns

Auto insurance companies take up the personal data of people who insure their vehicles. This leads to data security and privacy concerns, challenging the market’s growth.

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Some of the major players operating in the auto insurance market are:

● State Farm
● Ping An Insurance
● Zurich AG
● AllState
● PICC Property & Casualty Co Ltd
● Allianz SE
● AXA SA
● Assicurazioni Generali
● GEICO
● Bajaj Finserv

Key Segments covered in the market:

By Coverage:

● Collision/Comprehensive/Other Optional Coverages
● Third Party Liability Coverage

By Distribution Channel:

● Direct Response
● Insurance Agents/Brokers
● Banks
● Others

By Vehicle Age:

● Used Vehicles
● New Vehicles

By Application:

● Commercial
● Personal

About the report:

The global auto insurance market is analyzed based on value (USD billion). All the segments have been analyzed on a worldwide, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report offers an in-depth analysis of driving factors, opportunities, restraints, and challenges for gaining critical insight into the market. The study includes Porter’s five forces model, attractiveness analysis, raw material analysis, supply, and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients’ objectives of high-quality output within a short span of time. We provide both customized (clients’ specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients’ requirements whether they are looking to expand or planning to launch a new product in the global market.

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