Dublin, Jan. 23, 2024 (GLOBE NEWSWIRE) -- The "Automobile Insurance Carriers Global Market Report 2024" report has been added to ResearchAndMarkets.com's offering.
The automobile insurance carriers market size has grown rapidly in recent years. It will grow from $847.06 billion in 2023 to $933.3 billion in 2024 at a compound annual growth rate (CAGR) of 10.2%. North America was the largest region in the automobile insurance carriers' market in 2023. During the historical period, the increase in motorization and vehicle ownership, adherence to legal requirements and regulatory standards, population growth coupled with urbanization, a surge in traffic accidents and collisions, as well as economic expansion and enhanced affordability were factors contributing to the observed growth.
The automobile insurance carriers market size is expected to see rapid growth in the next few years. It will grow to $1430.69 billion in 2028 at a compound annual growth rate (CAGR) of 11.3%. In the projected period, the anticipated growth is linked to the persistent increase in vehicle ownership, the dynamic evolution of legal frameworks and regulations, challenges in urban mobility, shifts in consumer behavior and preferences, economic patterns, and considerations of affordability. Key trends expected in the forecast period encompass heightened attention to cybersecurity, assessments of climate change effects and catastrophe modeling, the prioritization of customer-centric services, adaptations to regulatory changes, and the integration of big data analytics.
The automotive insurance carrier market is anticipated to witness growth due to the increasing number of accidents. Notably, in December 2022, the Ministry of Road Transport and Highways reported a 12.6% rise in traffic accidents in India, reaching 412,432 in 2021 from 366,138 in 2020. Similarly, the National Highway Traffic Safety Administration noted a 10.5% increase in fatalities in the United States, reaching 42,915 in 2021, fostering demand for automotive insurance carriers.
The automotive insurance carrier market is poised for growth, driven by the expansion of the automotive industry. Notably, in August 2023, the Board of Governors of the Federal Reserve System reported an increase in total vehicle production in the United States to 11.77 million units in July 2023, up from 10.91 million units in June 2023. This growth in automotive sales contributes to the rising demand for automotive insurance carriers.
A notable trend in the automotive insurance carriers market is the emphasis on product innovations. Companies within this market are actively adopting innovative strategies to enhance their market position. For instance, in January 2023, New India Assurance (NIA), a general insurance company based in India, introduced the Pay as You Drive (PAYD) policy. This innovative policy allows policyholders to save money through renewal premium discounts, provided their vehicles stay within specified kilometers. Furthermore, if a vehicle exceeds the predetermined limit, coverage will persist for the remaining policy duration. Product innovations such as PAYD are indicative of the dynamic landscape within the automotive insurance carriers market, reflecting a commitment to meeting evolving customer needs.
Prominent players in the automotive insurance carriers' market are strategically investing in technological advancements, particularly the development of mobile telematics-based auto insurance, to secure a competitive advantage. In a notable example, Edelweiss General Insurance, an Indian non-life insurance provider, introduced SWITCH in July 2022. This on-demand policy enables customers to purchase and renew coverage as needed, with premiums calculated based on the insured's driving habits tracked through telematics. The policy not only determines premiums but also offers feedback to policyholders regarding their driving behavior.
In January 2021, State Farm Mutual Automobile Insurance, a leading US-based insurance company, completed the acquisition of Gainsco for $400 million. This strategic collaboration aimed to position both entities as premier nationwide non-standard personal auto insurers. Gainsco, a US-based auto insurance company, distributes its insurance brand, Gainsco Auto Insurance, through independent retail agents across the United States. The acquisition underscored the industry's pursuit of consolidation and expansion to strengthen market presence and enhance offerings in the automotive insurance landscape.
Report Scope
Markets Covered:
- By Coverage: Third-Party Liability Coverage; Collision or Comprehensive or Other Optional Coverages.
- By Vehicle Type: Passenger Cars; Light Commercial Vehicle (LCV); Heavy Commercial Vehicle (HCV) or Trucks and Buses.
- By Distribution Channel: Insurance Agents; Direct Response; Banks; Other Distribution Channels.
Key Companies Mentioned: State Farm Mutual Automobile Insurance Company; Government Employees Insurance Company; The Allstate Corporation; People's Insurance Company of China; China Pacific Insurance Co.
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa.
Time Series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments.
A selection of companies mentioned in this report includes:
- State Farm Mutual Automobile Insurance Company
- Government Employees Insurance Company
- The Allstate Corporation
- People's Insurance Company of China
- China Pacific Insurance Co.
- Universal Sompo General Insurance Company Limited
- Ping An Insurance (Group) Company of China Ltd.
- Berkshire Hathaway Inc.
- Admiral Group plc
- Tokio Marine Group
- Allianz SE
- Progressive Casualty Insurance Company
- Zurich Insurance Group plc
- Farmers Insurance Group
- Liberty Mutual Holding Company Inc.
- RAC Motoring Services Ltd.
- Clements & Company and later Clements International
- National Farmers' Union Mutual Insurance Society Limited (NFU Mutual)
- United Services Automobile Association
- RSA Insurance Group Ltd.
- American International Group Inc.
- Assicurazioni Generali S.p.A.
- AXA Cooperative Insurance Company
- Bajaj Allianz General Insurance Company Limited
- Mitsui Sumitomo Insurance Co. Ltd.
- Reliance General Insurance Company Limited
- The Hanover Insurance Group Inc.
- American Family Mutual Insurance Company
- AmTrust North America Inc.
- Automobile Club MI Group
- Auto-Owners Insurance Co.
- CSAA Insurance
- Erie Insurance Co.
- Mapfre SA
- Mercury General Corp.
- Nationwide Mutual Insurance Company
- Security National Insurance Company
- Sentry Insurance Group
- Technology Insurance Company
- Hartford Financial Services Group Inc.
- Travelers Companies Inc.
For more information about this report visit https://www.researchandmarkets.com/r/hm2d04
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