Auto Insurance Market Size Worth $1,620.2 Billion By 2028
FELTON, Calif., Feb. 7, 2022 /PRNewswire/ — The global auto insurance market size is expected to reach USD 1,620.2 billion by 2028, according to a new report by Million Insights. It is expected to expand at a CAGR of 8.8% from 2021 to 2028. The growing middle-class population in developing economies like China, India, and Brazil is propelling the demand for auto insurance. Various initiatives by the government and reforms regarding insurance policies have led to the significant growth of the market.
Key Insights from the report:
- Asia Pacific is expected to register the fastest CAGR of 9.6% from 2021 to 2028 owing to the rising middle-class population in developing countries, including China and India
- Based on coverage, the third-party liability coverage segment held the largest share of more than 60.0% in 2020 due to the rising investment in the insurance sector by various companies
- North America held the largest share of over 40.0% in 2020 due to theincreasing demand in the U.S. and Canada
- By application, the private passenger segmentheld the largest share of over 85.0% in 2020 owing to its increasing demand
Some Key Factors Driving the Global Auto Insurance Market:
The implementation of stringent government regulations for the adoption of auto insurance, the increasing number of accidents, and an increase in automobile sales globally are major factors responsible for the market growth. Moreover, increasing implementation of technologies in the existing products, coupled with the rising demand for third-party liability coverage in emerging nations, is projected to expand the market over the forecast period.
The third-party liability coverage segment held the largest share of over 60.0% in 2020. This insurance is compulsory for all vehicle owners under the motor vehicle act. It covers legal liability for the damage caused by the owner to the third party. Rising investment in the insurance sector by various companies is propelling the growth of third-party liability insurance. It will also register the highest growth rate over the forecast period due to its increasing demand.
North America accounted for the largest share of over 40.0% in 2020 due to the increasing demand in the U.S. and Canada. The insurance companies are providing lower premium rates that reward the client’s healthy lifestyle. Moreover, a rise in the purchase of cars is another major factor driving the regional market. Asia Pacific is expected to register the fastest CAGR of 9.6% from 2021 to 2028. This is on account of the growing trend of auto insurance in this region.
Million Insights has segmented the global auto insurance market on the basis of coverage, distribution channel, application, and region:
- Auto Insurance Coverage Outlook (Revenue, USD Billion, 2017 -2028)
- Third-party Liability Coverage
- Collision/Comprehensive/Other Optional Coverages
- Auto Insurance Distribution Channel Outlook (Revenue, USD Billion, 2017 – 2028)
- Insurance Agents/Brokers
- Direct Response
- Banks
- Others
- Auto Insurance Application Outlook (Revenue, USD Billion, 2017 -2028)
- Private Passenger
- Commercial Passenger
- Auto Insurance Regional Outlook (Revenue, USD Billion, 2017 -2028)
- North America
- U.S.
- Europe
- Germany
- U.K.
- France
- Asia Pacific
- China
- Japan
- Central & South America
- Brazil
- Middle East & Africa
- South Africa
- North America
List of Key Players of Auto Insurance Market
- People’s Insurance Company of China
- CHINA PACIFIC INSURANCE CO.
- Ping An Insurance (Group) Company of China, Ltd.
- State Farm Mutual Automobile Insurance
- Berkshire Hathaway Inc.
- Admiral Group Plc
- GEICO
- Tokio Marine Group
- Allianz
- Allstate Insurance Company
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.