Vehicle Insurance Market is in Trends by Growing Automobile Demand...

Vehicle Insurance Market is in Trends by Growing Automobile Demand

Veröffentlicht 2024-05-23 12:28:55

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The vehicle insurance market provides compensation against losses or damage to vehicles and ensures financial support to policyholders in events such as vehicle theft or collisions. It protects vehicle owners and drivers against third-party liabilities arising from vehicle accidents. Insurance companies offer policies covering accidental damage, theft, third-party liability, and own damage of vehicles. Vehicle insurance has become a necessity owing to increasing vehicle demand and accidents globally.

The Global Vehicle Insurance Market is estimated to be valued at US$ 993.88 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the vehicle insurance are People’s Insurance Company of China, Allstate Insurance Company, China Pacific Insurance Co., Allianz, State Farm Mutual, Tokio Marine Group, Automobile Insurance, Geico, Ping An Insurance (Group) Company of China, Ltd., Admiral Group Plc, Berkshire Hathaway Inc., State Farm, Ping An Insurance, Zurich AG, AXA SA, Assicurazioni Generali, GEICO, Bajaj Finserv. The growing vehicle fleet globally is fueling the demand for vehicle insurance policies. Additionally, mandatory norms for vehicle insurance in many countries are driving more people to opt for insurance. The major players are focusing on expanding their business operations to emerging markets in the Asia Pacific, Latin America, and Middle East & Africa to tap the growth opportunities.

Market key trends

One of the key trends in the Vehicle Insurance Market Size is the adoption of telematics technology. Insurance companies are offering pay-as-you-drive policies relying on vehicle tracking devices that analyze driving behavior. Usage-based insurance policies allow firms to collect driving data which is further used to understand risks better and price policies accordingly. This leads to discounts for safer drivers and optimizes premium rates. Such policies are gaining traction among customers especially young drivers looking for competitive rates.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is relatively low due to the high costs of set up and economies of scale enjoyed by existing players.
Bargaining power of buyers: Buyers have moderate bargaining power given the necessity of vehicle insurance and availability of substitutes.
Bargaining power of suppliers: Suppliers have low bargaining power since insurers often provide their own coverage.
Threat of new substitutes: The threat of substitutes is moderate due to existence of self insurance and alternative risk transfer methods.
Competitive rivalry: Competition is intense given the large number of players in the market.

Geographically, the value market for vehicle insurance is currently concentrated in Asia Pacific. Countries like China, Japan and India have significant vehicle parcs and mandatory insurance requirements, contributing to large market sizes.

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