The global automotive insurance market, according to the recent report published by Market Research Future (MRFR), is touted to attain a substantial market valuation at a moderate CAGR over the review period.
Drivers and Restraints
Several influential factors are driving the growth of the global automotive insurance market, such as the increasing awareness among end-use industry verticals, the advent of advanced technologies and products, and the availability of third-party insurance suppliers in emerging economies such as Brazil, India, Indonesia, Vietnam, and China to offer substantial traction for the automotive insurance market over the review period. Moreover, automotive insurance companies are likely to work with software providers to deliver big data-based solutions to fulfill the end user’s concerns and available market demand during a car-related transaction in the near future.
Additionally, digital technologies and mobile internet are expected to transform the vehicle industry, consequently driving the automotive insurance market. The automotive sector is indisputably undergoing significant changes that are likely to contribute towards an increase in asset utilization, change vehicle ownership models, and enhance vehicle safety, which will eventually impact the global automotive insurance market. Furthermore, the advent of autonomous technology has made cars increasingly safer, which is expected to reduce vehicle accidents by a notable amount over the forecast period. On the other hand, an increase in on-demand transportation and the shift of liability to market players are some of the impactful factors that are slated to hamper the growth of global automotive insurance over the assessment period.
The global market for automotive insurance is bifurcated on the basis of vehicle type and insurance type. On the basis of vehicle type, the global market for automotive insurance has been segmented into light commercial vehicles (LCV), passenger cars, and heavy commercial vehicle (HCV). On the basis of the insurance type, the global automotive insurance market has been segmented into comprehensive, third-party, third theft and fire, and others
On the basis of the region, the global market for automotive insurance is studied in Europe, North America, Asia-Pacific, and the rest of the world. Asia-Pacific is one of the major markets for automotive insurance and is projected to account for the largest market share in the global automotive insurance market due to the flourishing automotive industry in the region, significant vehicle sales, and the augmented consumer awareness to evade financial inconvenience during repairs and theft. The Europe automotive insurance market, on the other hand, is expected to expand progressively over the review period due to economic recovery in the past few years, with a focus on compulsory motor third-party liability insurance.
North America is also assessed as one of the significant markets for automotive insurance and is estimated to register substantial growth in the global automotive insurance market due to the remarkable sales of light commercial vehicles over the review period.
The major market players involved in the global automotive insurance market as identified by MRFR are RAC Motoring Services (UK), Allstate Insurance Company (US), Progressive Casualty Insurance Company (US), GEICO (US), Clements Worldwide (US), NFU Mutual (UK), ABIC Inc. (China), Zhongan Insurance (China), CPIC (China), RSA Insurance Group plc (UK), State Farm Mutual Automobile Insurance Company (US), and Zurich Insurance Group (Switzerland).
The market players operating in the global insurance market are expected to increase the investments towards research and development activities and expand the competitive dynamics of the global automotive insurance market with business strategies such as mergers, acquisitions, joint ventures, and partnerships, among others. These are expected to create growth opportunities in the market over the review period.
Note: The COVID-19 pandemic disruption is estimated to transform the XX market in the years to come drastically, and its after-effects will be persistently seen in the years ahead. The MRFR report on the XX market meticulously tracks the COVID-19 pandemic effect for the years ahead. Moreover, the precise analysis of drivers and restraints in a post-COVID-19 market offers a coherent understanding of future growth cues.