Global Auto Insurance Market Size By Type (Insurance Broker/Agency and Online), By Application (Personal Insurance Premium and Commercial Insurance Premium), By Geographic Scope And Forecast

Auto Insurance Market Size And Forecast

Auto Insurance Market size was valued at USD 784.72 Billion in 2021 and is projected to reach USD 1176.95 Billion by 2030, growing at a CAGR of 4.61% from 2022 to 2030.

The global auto insurance market is booming! Why? Well, more people are driving to work, which, unfortunately, means more auto insurance claims. Plus, cities are growing like crazy, and everyone seems to be buying a new car. That's really pushing the market forward. And let's not forget the government – they're making some tougher rules that are also helping the auto insurance market grow. If you want the full scoop, the Global Auto Insurance Market report gives you a complete picture. It dives into all the important stuffkey market segments, the latest trends, what's driving growth (and what's holding it back), who the major players are, and all the other important things impacting the market.

Global Auto Insurance Market Definition

Auto insurance refers to the insurance for the passenger as well as commercial vehicles such as cars, buses, trucks, motorcycles, and other vehicles. The automobiles can be secured with insurance by providing financial protection from vehicle damages caused due to road disasters and different other incidents. The end-users need to pay a certain amount of money to the insurance company to insure their vehicles against unfortunate incidents.

The insurance companies offer financial assistance to the vehicle owners whenever such incidents happen and the vehicle is damaged. However, the unfortunate incidents must be the events mentioned in the terms and conditions of the policy of the insurance companies. If the disasters and the damage would not qualify the conditions mentioned in the companies’ policy, the clients won’t get the insurance claim for protecting their vehicles.

There are three major types of auto insurance such as liability coverage, collision coverage, uninsured (underinsured motorist), personal injury protection (medical payments), and comprehensive coverage. Liability coverage covers the drivers when they cause damage to others and/or their vehicle. While, collision coverage protects the car if it hits another car or other type of vehicle, person, or non-moving objects across the road and roadsides. The demand for auto insurance is growing around the world due to the growing adoption of different types of vehicles.

Global Auto Insurance Market Overview

The demand for auto insurance across the world is growing during the forecasted period, as the automotive industry is booming due to the growing demand for vehicles across the world. The demand and increase in the sales of automobiles due to an increase in per capita income in developing countries is the major factor responsible for the growth of the Global Auto Insurance Market. In addition to this, governments of different countries around the world have enacted mandatory rules and regulations for buying insurance policies while purchasing new vehicles has also boosted the growth of this market. Furthermore, new insurance product launches and innovations are also expected to fuel the growth of this market.

Moreover, various add-on coverages and benefits offered by leading insurance players such as zero depreciation insurance cover, and discounts, amongst others, are also expected to drive the Global Auto Insurance Market. Apart from this, the rise in the number of accidents and damages is also going to drive the growth of this market.

Furthermore, rising demand for insurance automation to personalize offerings to the customers to deliver real-time to strengthen relationships. Increasing adoption of advanced technologies such as AI, Machine Learning to fasten the process by freeing the staff from claims and shifting their focus on frictionless and rapid claiming process. The growth of the market is hampered due to unprecedented privacy issues. Companies are increasingly developing smart photo analysis systems to understand the damage to the vehicle through detection of the crash, assessing and initiating the insurance claims through real-time analysis. The increasing shift toward innovative technology is paving the way for the growth of the Global Auto Insurance Market.

Ongoing digitalization is gaining huge attention in various parts of the world. In today’s time, digital technologies as well as automotive telematics is changing the face of the automotive insurance industry. With the emergence of new technology and increasing awareness about the benefits of artificial intelligence is pushing the market growth. Therefore, the rising demand for insurance automation and the introduction of other technological advancements in auto insurance will offer lucrative opportunities for the Global Auto Insurance Market to grow over the forecasted period. However, insufficient coverage to cover more serious accidents, bad customer service, and high deductibles, among others, might strangle the growth of the Global Auto Insurance Market.

Global Auto Insurance MarketSegmentation Analysis

The Global Auto Insurance Market is segmented based on Type, Application, and Geography.

Auto Insurance Market, By Type

• Insurance Broker/Agency• Online

So, when we look at the market by Type, it's split into two main areasInsurance Broker/Agency and Online. Right now, in 2021, the Insurance Broker/Agency side is really leading the pack with the biggest chunk of the market. But, looking ahead, the Online segment is expected to grow much faster! That's because getting insurance online has some pretty cool advantages compared to going through an agent. Plus, more and more people are using devices that can connect to the internet, thanks to better networks and wider internet access. For example, according to the Cellular Telecommunications Industry Association in Washington, DC, a whopping 99% of people in the United States can get on at least three 4G/LTE networks. This is mostly because everyone's using smartphones and tablets these days. And, let's face it, smartphones are getting so advanced that they're changing how companies market their stuff and even how we live our lives.

Auto Insurance Market, By Application

• Personal Insurance Premium• Commercial Insurance Premium

Based on Application, the market is segmented into Personal Insurance Premium and Commercial Insurance Premium. In 2021, the Personal Insurance Premium segment has dominated the market accounting for the largest market share. However, the Commercial Insurance Premium segment is growing with a higher CAGR during the forecasted period. Commercial auto insurance covers the entire auto business including multiple drivers, multiple vehicles, trucks, and employees with poor driving records. On the other hand, Personal Insurance Premium covers only one person involved in the vehicle driving and incident. Thus, the Commercial Insurance Premium segment is growing.

Auto Insurance Market, By Geography

• North America• Europe• Asia Pacific• Latin America• Middle East & Africa

Okay, so when we look at the global auto insurance market, we break it down by regionNorth America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Right now, North America is in the driver's seat, leading the pack. And get this, they're expected to keep growing and stay on top for the foreseeable future! It seems like everyone there wants their own set of wheels, from cars to camper vans and even mini trucks. But hold on, because Asia-Pacific is revving up! They're growing super fast, with a higher CAGR, thanks to some cool new things happening in that part of the world.

Key Players

The “Global Auto Insurance Market” study report will provide valuable insight with an emphasis on the global market. The major players such as Allianz, AXA, Assicurazioni Generali, Allstate, American International Group, Berkshire Hathaway Homestate, Zurich Insurance Group, Munich Re, Prudential, and China Life Insurance Group., amongst others, are a few major companies operating in the Auto Insurance Market. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Key Developments

• In May 2022, Zurich Insurance Group (Zurich) agreed to sell its business in Russia to 11 members of the unit’s team. The transaction will allow the new company to retain a professional team with the accumulated insurance expertise and to continue serving the Russian market.

• In April 2022, Allstate announced that it is raising auto insurance rates more due to continued upticks in physical damage and bodily injury severity.

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Reasons to Purchase this Report

We dig deep into the market, using both number-crunching and understanding people's needs, breaking it down into manageable segments based on economic and other factors. We'll give you the market value in USD Billion for each of these segments and sub-segments. You'll learn which regions and segments are set to explode with growth and which ones are already leading the pack. We analyze each geographical area, looking at how much of the product/service is being used there and what's influencing the market in each region. We also map out the competitive scene, showing you the market ranking of the big players, their latest product launches, partnerships, expansions, and acquisitions over the last five years. Expect detailed company profiles, including overviews, insights, product comparisons, and SWOT analysis for the major companies. We'll provide the current and future market outlook, highlighting recent developments, opportunities, growth drivers, and the challenges and limitations in both emerging and established regions. We'll also give you an in-depth look at the market through Porter's five forces analysis. Plus, you’ll gain valuable insight into the market through a Value Chain perspective. We'll outline the market dynamics and point out growth opportunities in the coming years. Finally, you get 6 months of post-sales support from our analysts.

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