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2021 Global Motor Insurance Market

The global motor insurance market was valued at $745.5 billion of written premiums in 2020 and is expected to grow with a CAGR of more than 4% during the period 2021-2025. Global motor insurance contracted by more than 4% in 2020 due to the pandemic-related economic uncertainty, lockdown restrictions, and exacerbated by the auto sector’s long-term downturn. Even before the onset of the pandemic, adverse economic developments, mature market conditions, and industry disruptions slowed down the premium growth. Overall, insurance grew during the review period, with growth mainly driven by the expansion of the middle-class in Asia and other emerging markets. Owing to global economic recovery, the motor insurance business is expected to grow by more than 4% in 2021.

In 2020, North America was the leading region in the global motor insurance market, followed by Asia-Pacific, and Europe. The top markets by written premiums include the US, China, Japan, Germany, and France. Retail insurance comprised more than 90% of the global motor insurance business and benefitted from a growing middle-class and rise in disposable income in emerging markets. Some of the key motor insurers include State Farm, The Progressive Corporation, Berkshire Hathaway Inc., Allstate Corporation, and MS&AD Insurance Group Holdings Inc.

Overview of the global motor insurance marketOverview of the global motor insurance market

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What are the market dynamics of the global motor insurance market?

The adoption of telematics or usage-based auto insurance is rapidly growing in the insurance industry. The US is leading globally in adopting telematics technology. However, Italy, South Africa, and Singapore have also had the highest penetration of telematics in recent years. The Telematics system provides real-time data by monitoring the vehicle with GPS and onboard diagnostics. It measures driver behavior and helps insurance companies understand their risk.

Digitally enabled motor insurance products are providing insurers with an opportunity to increase contact points with their customers and improve the understanding of their needs across the globe. The e-call system acts as a gateway for insurance companies to connect with other services. In Europe, the e-call system was adopted in 2015 and is the technology that provides an automated message during an emergency situation (road crash). It established an emergency call carrying both voice and data directly to the nearest emergency services.

Right to privacy and data protection laws have developed rapidly over the years. Insurers process data to analyze the risks that insureds wish to cover. This helps insurers to customize their insurance products accordingly. In November 2021, UAE Cabinet announced the enactment of rules on Protection of Personal Data to ensure the confidentiality of the information and protect the privacy of members.

In September 2021, the Insurance Association of Malawi introduced an automated motor vehicle insurance system linked to the ‘Malawi Traffic Information System’ to serve clients more efficiently. In September 2021, the Central Bank of Bahrain announced the digitalization of the motor insurance process as part of the financial digital transformation. In February 2020, Michigan DIFS launched new online services as part of its implementation of the new auto insurance law to provide any updates, impacts, and actions required by motor drivers regarding motor insurance reforms.

What are the key categories of the global motor insurance market?

The global motor insurance market is categorized into commercial and retail. Retail insurance comprised more than 90% of the total global motor insurance business and benefitted from a growing middle-class and rise in disposable income in emerging markets. Retail is also expected to show a higher growth rate than commercial, during the forecast period. The uncertain job market situation and a rise in unemployment levels prompted retail buyers to focus more on savings. Prior to the outbreak, growing demand for fleet insurance from businesses, the expansion of rideshare services such as Uber and Lyft, and logistics demand induced by online marketplace growth such as Alibaba, Flipkart, and Amazon expanded the scope of commercial insurance.

Global motor insurance market, by key categoriesGlobal motor insurance market, by key categories

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Which are key regions and countries in the global motor insurance market?

North America was the leading market in the global motor insurance sector, followed by Asia-Pacific, Europe, the Middle East & Africa, and South & Central America. Asia-Pacific is the only region to report positive growth in 2020 mainly supported by growth in South Korea and Taiwan. South and Central America recorded the steepest decline. The US was the leading country in terms of written premiums in 2020, followed by China, Japan, Germany, and France. China was the leading Asian market in 2020, with growth propelled by its expanding middle-class diaspora. Canada, the seventh-largest motor insurance market, was the fastest-growing among the top 10 markets during the review period.

Global motor insurance market, by key regions

Global motor insurance market, by key regions

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Who are the major insurers in the global motor insurance market?

The top motor insurers by written premiums in 2020 include State Farm, The Progressive Corporation, Berkshire Hathaway Inc., Allstate Corporation, MS&AD Insurance Group Holdings Inc., Tokio Marine Holdings Inc., USAA, Liberty Mutual Holding Company Inc., Sompo Holdings Inc., and Farmers Insurance Group. State Farm was the leading global insurer, though its premium growth declined in 2020. The Progressive Corporation was the fastest-growing insurer during this period. It improved its ranking by one position to become the second-largest global motor insurer in 2020.

Global motor insurance market, by key companies

Global motor insurance market, by key companies

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Market report scope

Market size (year – 2020) $745.5 billion
Growth CAGR >4% during 2021-2025
Base year for estimation 2020
Forecast Period 2021-2025
Key categories Commercial and Retail
Regional coverage North America, Asia-Pacific, Europe, the Middle East & Africa, and South & Central America
Key players State Farm, The Progressive Corporation, Berkshire Hathaway Inc., Allstate Corporation, MS&AD Insurance Group Holdings Inc., Tokio Marine Holdings Inc., USAA, Liberty Mutual Holding Company Inc., Sompo Holdings Inc., and Farmers Insurance Group.

Scope

This report provides a comprehensive analysis of the global motor insurance industry. It includes:

  • Historical values for the global and regional motor insurance industry for the report’s 2016-2020 review period, and projected figures for the forecast period 2020-2025.
  • Detailed analysis of the regional motor insurance industry and market forecasts to 2025.
  • Key market trends in the global motor insurance industry.
  • In-depth analysis of the global retail and commercial motor insurance sectors.
  • Analysis of consumer preference in purchasing motor insurance via different channels.
  • Rankings, premiums and market share of top global and regional motor insurers and analyzes the competitive landscape.

Reasons to Buy

  • Make strategic business decisions using in-depth historic and forecast market data related to the global and regional motor insurance industry.
  • In-depth market analysis, information, and insights into the global motor insurance industry.
  • In-depth analysis of the competitive landscape and top 20 regional markets.
  • Understand the key dynamics, trends, and growth opportunities in the global and regional motor insurance industry.
  • Identify key regulatory developments impacting the market growth.
  • Identify growth opportunities in key regional markets.

Key Players

State Farm

The People’s Insurance Company of China Ltd

Berkshire Hathaway Inc

The Progressive Corporation

Ping An Insurance Company of China Ltd

Allstate Corporation

Allianz SE

MS&AD Insurance Group Holdings Inc

Tokio Marine Holdings Inc

Liberty Mutual Holding Company Inc

USAA

Sompo Holdings

Farmers Insurance Group

Table of Contents

Executive Summary

Key Market Trends

• COVID-19 Impact Assessment

• Key Market Trends

Global Overview

• Market Size

• Profitability

• Commercial and Retail

• Top Markets

Competitive Landscape

• Market Competition Overview

• Company Profiles

Regional Overview

• Asia – Pacific

• Europe

• Middle East and Africa

• North America

• South and Central America

Market Outlook

Key Statistics

Appendix

• Methodology

• About GlobalData

Frequently Asked Questions

The global motor insurance market was valued at $745.5 billion in 2020.

The global motor insurance market is expected to grow by a CAGR of more than 4% during 2021-2025.

The global motor insurance market is being categorized into commercial and retail.

North America was the largest market in the global motor insurance sector, followed by Asia-Pacific, Europe, the Middle East & Africa, and South & Central America.

State Farm, The Progressive Corporation, Berkshire Hathaway Inc., Allstate Corporation, MS&AD Insurance Group Holdings Inc., Tokio Marine Holdings Inc., USAA, Liberty Mutual Holding Company Inc., Sompo Holdings Inc., and Farmers Insurance Group are the key players in the global motor insurance market.

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