# Motor Insurance Market

> Motor Insurance Market Size, Share and Research Report By Coverage Type (Third-Party Liability Insurance, Comprehensive Coverage), By Distribution Channel (Insurance Agents and Brokers, Direct Sales, Bancassurance, Other Channels), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Two-Wheelers, Heavy Commercial Vehicles), By Vehicle Age (New Vehicles, Used Vehicles) and By Regional (North America, Europe, Asia-Pacific, South America, Middle East & Africa) - Industry Forecast to 2035.

- **Forecast Period:** 2026-2035
- **CAGR:** 6.2%
- **2025:** USD 2,285.0 Billion
- **2035:** USD 4,192.9 Billion
- **Key Players:** State Farm, Progressive, GEICO (Berkshire Hathaway), PICC Property and Casualty, Allstate, Ping An Property & Casualty, Allianz, Liberty Mutual

**Report ID:** MRFR/BS/14682-HCR · **Pages:** 128 · **Author:** Nirmit Biswas · **Last Updated:** October 12, 2026

**URL:** https://www.marketresearchfuture.com/reports/motor-insurance-market-16210

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## Market Summary

## Motor Insurance Market Summary

The Motor Insurance Market was valued at USD 2,285.0 billion in gross written premiums in 2025 and is forecast to reach USD 2,440.0 billion in 2026 before climbing to USD 4,192.9 billion by 2035, a CAGR of 6.2% over 2026–2035. Two catalysts anchor that path. India's [Motor Vehicles](https://www.marketresearchfuture.com/reports/motor-vehicle-market-11406) (Amendment) Act 2019 multiplied penalties for driving without compulsory liability cover, and enforcement is tightening in a country where roughly half of on-road vehicles still lack valid policies [7][8]. In the United States, the motor vehicle insurance component of the Consumer Price Index rose about 20% during 2023, and those rate increases continue to earn through renewal books into 2026 [3].

Underwriting and claims are being rebuilt around data. Carriers that once priced on driver age, postcode and vehicle class now feed connected-car signals, image-based damage estimates and machine-learning fraud scores into a single decision. Phone-and-paper first notice of loss is giving way to app-based submissions where photo analytics estimate repair costs within minutes. Vehicle technology forces the shift: global [electric car](https://www.marketresearchfuture.com/reports/electric-car-market-66567) sales passed 17 million in 2024, more than one in five new cars sold [2], while ADAS calibration now appears on a rising share of repair estimates and lifts average repairable severity [4].

North America leads with a 33.4% share of 2025 premiums, supported by high vehicle values and litigation-driven liability costs. Asia-Pacific is the fastest-growing region at a 9.5% CAGR as China and India add insured vehicles at scale. Europe ranks second at USD 653.5 billion, where the revised Motor Insurance Directive has harmonized minimum cover and victim protection [6]. Through 2035, the Motor Insurance Market will reward carriers that price battery and sensor risk precisely and distribute through embedded and digital channels.

## Key Report Takeaways

### • By Coverage Type

- Third-Party Liability Insurance held a 45.3% share of the Motor Insurance Market in 2025, reflecting statutory minimum cover across most jurisdictions.
- Comprehensive Coverage is the fastest-growing coverage type at a 7.9% CAGR through 2035 as higher vehicle values justify broader protection.

### • By Distribution Channel

- Insurance Agents / Brokers placed 44.1% of written premiums in 2025, retaining an advisory edge in complex and commercial risks.
- Direct Sales expand at a 9.1% CAGR, the fastest of any channel in the Motor Insurance Market.

### • By Vehicle Type

- [Passenger Cars](https://www.marketresearchfuture.com/reports/passenger-cars-market-42133) captured 67.9% of global premiums in 2025
- Two-Wheelers generated USD 205.7 billion in premiums in 2025, concentrated in South and Southeast Asia
- Light Commercial Vehicles grow at a 7.4% CAGR on the back of last-mile delivery fleet expansion

### • By Vehicle Age

- New Vehicles accounted for 61.2% of premiums in 2025, supported by lender-mandated own-damage cover
- Used Vehicles post a 6.4% CAGR as owners keep cars longer and resale volumes rise

### • By Region

- North America led with a 33.4% share in 2025
- Europe generated USD 653.5 billion in premiums in 2025
- Asia-Pacific is the fastest-growing region at a 9.5% CAGR

## Market Size and Forecast (2021–2035)

Market Research Future sized the Motor Insurance Market from reported gross written premiums of listed and mutual carriers, supervisory statistics from the NAIC, IRDAI and Insurance Europe, Swiss Re's sigma series, and more than 350 interviews with underwriters, brokers and claims executives [1][7][9][19]. Historical values were normalized to constant USD exchange rates and validated top-down against national premium aggregates. Forecasts combine vehicle-parc growth, average premium per policy and channel penetration under a base-case scenario.

## Market Drivers

## Driver Impact Analysis

| Driver | ~% Impact on CAGR | Geographic Relevance | Impact Timeline | Ref |
| --- | --- | --- | --- | --- |
| Repair cost inflation and rate adequacy | +1.2% | North America, Europe | Short-term (≤2 yr) | [3][4] |
| Enforcement of compulsory liability cover | +1.0% | Asia-Pacific, Middle East & Africa, South America | Long-term (≥4 yr) | [5][7][8] |
| Rising vehicle parc and motorization in Asia | +0.9% | Asia-Pacific | Long-term (≥4 yr) | [20] |
| EV and ADAS penetration lifting insured values | +0.8% | Global | Medium-term (2–4 yr) | [2][4] |
| Digital and embedded distribution scaling | +0.7% | Global | Medium-term (2–4 yr) | [16][21] |
| Connected-car data and behavior-based pricing | +0.5% | North America, Europe | Medium-term (2–4 yr) | [12] |

### Repair Cost Inflation and Rate Adequacy

Carriers spent 2023 and 2024 repricing books after severity outran premiums. The US motor vehicle insurance CPI rose roughly 20% year-on-year in late 2023, the sharpest increase in decades [3]. CCC data show average repairable claim costs climbing as sensor-laden bumpers, windshields and headlamps require calibration after even minor impacts [4]. Those rate actions are now earning through, lifting written premium per policy even as frequency stabilizes, and they set a higher base for 2026 renewals.

### Enforcement of Compulsory Liability Cover

Compulsory liability cover remains the entry point to motor protection in emerging economies, and enforcement is getting sharper. India's 2019 amendment multiplied fines for uninsured driving, and automated number-plate recognition is extending checks to highways and toll plazas [8]. IRDAI data confirm liability premiums form a substantial portion of the national motor book [7]. The WHO counts 1.19 million road deaths a year, 92% of them in low- and middle-income countries, which keeps victim compensation high on regulators' agendas [5].

### Rising Vehicle Parc and Motorization in Asia

OICA counts more than 1.6 billion vehicles in use worldwide, with Asia supplying the largest share of annual additions [20]. China alone sold over 31 million vehicles in 2024. Every new registration creates a statutory liability policy and, for financed purchases, a lender-imposed own-damage requirement. Car ownership in India and Indonesia remains below 100 per 1,000 people, leaving a long runway for policy-count growth.

### EV and ADAS Penetration Lifting Insured Values

Electric cars took more than 20% of global new car sales in 2024 [2]. Higher purchase prices, battery packs that can account for close to half a vehicle's value and scarce certified repairers push EV premiums an estimated 15–25% above comparable combustion models in many markets. ADAS adds similar pressure: a camera-equipped windshield with calibration can cost several times a basic unit [4]. Battery-specific endorsements are raising average premium per vehicle across the insured base.

### Digital and Embedded Distribution Scaling

Self-service quote-to-bind journeys and point-of-sale integrations cut acquisition costs and widen reach. Progressive, a direct-heavy writer, grew net premiums written by about 20% in 2024, illustrating the scale advantage of digital-first models [16]. EIOPA's consumer trends work shows comparison sites and embedded offers shaping a growing share of European motor purchases [21]. API links between lenders, dealers and insurers allow a policy to be bound inside the financing transaction, lifting conversion and persistency.

### Connected-Car Data and Behavior-Based Pricing

Connected vehicles transmit driving behavior that carriers can price directly, subject to consent. Telematics insurance programs in the United States, Italy and the United Kingdom reward low-mileage and smooth drivers with renewal discounts commonly ranging from 10% to 30%, improving retention among the safest risks. The UK ban on price walking under FCA rules PS21/5 pushed carriers to compete on risk accuracy rather than loyalty penalties, accelerating behavior-data adoption [12].

## Restraints

## Restraints Impact Analysis

| Restraint | ~% Impact on CAGR | Geographic Relevance | Impact Timeline | Ref |
| --- | --- | --- | --- | --- |
| Affordability pressure and underinsurance | −0.6% | North America, Europe | Short-term (≤2 yr) | [3][13] |
| Claims fraud and ghost broking | −0.5% | Europe, North America, Asia-Pacific | Short-term (≤2 yr) | [10][11] |
| Rate regulation and approval delays | −0.4% | North America, Asia-Pacific | Medium-term (2–4 yr) | [9] |
| Catastrophe losses and reinsurance costs | −0.3% | Global | Medium-term (2–4 yr) | [1] |
| Liability migration toward automated driving | −0.3% | Europe, North America, Asia-Pacific | Long-term (≥4 yr) | [24] |

### Affordability Pressure and Underinsurance

Steep rate increases have pushed some drivers to raise deductibles, drop optional cover or drive uninsured. The UK government convened a cross-government Motor Insurance Taskforce in 2024 specifically to examine rising premiums [13]. In the US, the 2023 price jump coincided with record shopping and switching activity [3]. Downgrades from full cover to liability-only policies reduce average premium per policy and dampen value growth.

### Claims Fraud and Ghost Broking

Fraud inflates loss costs and erodes trust in digital channels. The Coalition Against Insurance Fraud estimates fraud costs the US economy USD 308.6 billion a year across all lines [11]. UK insurers detect thousands of fraudulent motor claims annually, while ghost brokers selling counterfeit policies on social media target younger drivers [10]. Identity checks and device fingerprinting curb losses but add friction and cost.

### Rate Regulation and Approval Delays

Prior-approval regimes slow carriers' response to rising loss costs. Delayed filings in several large US states during 2023–2024 led some writers to restrict new business, as reflected in NAIC market data [9]. Tariff-linked liability rates in parts of Asia similarly lag claims inflation, compressing margins and discouraging capacity in compulsory segments.

### Catastrophe Losses and Reinsurance Costs

Hail, flood and wildfire increasingly impact automobile vehicles. Swiss Re said global insurance losses from natural catastrophes exceeded USD 100 billion for the fifth straight year in 2024 [1]. Higher reinsurance retentions drive volatility into primary books, leading to tighter own-damage underwriting in exposed locations and slower physical-damage growth where hazards concentrate.

### Liability Migration Toward Automated Driving

Automation transfers liability from drivers to manufacturers and software operators. The UK Automated Vehicles Act 2024 puts the obligation on an authorized self-driving organization when a vehicle is driving itself [24]. This might mean smaller personal liability premiums in the long term, and redirect spend to product liability and cyber policies that reside outside traditional motor books.

## Opportunities

## Motor Insurance Market Opportunities

### Battery and EV-Specific Coverage

The biggest source of cost uncertainty in EV claims is battery damage, with many insurers continuing to write off lightly damaged vehicles due to the lack of pack diagnostics. Products addressing battery maintenance, replacement for degradation and home-charger liability can provide premium uplift and mitigate avoidable total losses. The IEA estimates that, under current policy, electric cars will represent more than 40% of worldwide sales by 2030 [2]. Carriers that partner with OEMs around pack-level diagnostics have a persistent pricing edge.

### Embedded Insurance with OEMs, Lenders and Mobility Platforms

Marketing tied to the point of sale or finance of a vehicle converts at much higher rates than marketing that is done in isolation. Carriers get vehicle data and low-cost acquisition through OEM captive programs, dealer finance bundles and ride-hailing master policies. In the Motor Insurance Market, this means competition moves to API capabilities and partner economics, which favors insurers that can issue, endorse and settle on a partner's app. The other way for financed two-wheelers is via bank partners in India and Southeast Asia.

### Underpenetrated Emerging Markets

Large uninsured fleets in India, Indonesia, the Philippines and Sub-Saharan Africa represent the biggest volume gap in the industry. Low-ticket digital policies for two-wheelers, sold through payment wallets and fuel-station kiosks, reach first-time buyers at a fraction of traditional acquisition cost. Enforcement of compulsory liability rules [8] and the WHO road-safety agenda [5] support conversion, while monthly premium options match informal income patterns.

### Data Monetization and Risk-as-a-Service

Carriers hold deep stores of driving-behavior, crash and repair data. Packaging that data as fleet-safety coaching subscriptions, municipal road-risk mapping or residual-value analytics for lessors creates fee income independent of underwriting cycles. Commercial fleets already pay for tracking hardware; insurers that bundle coaching with premium credits can lock in multi-year contracts and lower loss ratios at the same time.

### Parametric Weather Riders

Hail and flood claims arrive in surges that overwhelm adjusters. Parametric riders that pay a fixed sum when verified rainfall or hail-size thresholds are crossed settle in days, cut loss-adjustment expense and give customers immediate liquidity. Rising catastrophe exposure documented by Swiss Re [1] makes these riders attractive add-ons in hail-prone Texas and southern Germany.

## Future Outlook

## Motor Insurance Market Future Outlook

Four themes will shape the Motor Insurance Market through 2035, each changing where premium dollars flow and who captures margin.

### AI-Driven Claims and Underwriting

Image-based damage estimation, automated liability determination and fraud scoring will handle most simple claims by the early 2030s. Carriers already settle a growing share of glass and low-severity collision claims straight-through, cutting cycle times from weeks to days [4]. The constraint is shifting from technology to supervision: EU and US regulators expect explainability for automated rating and claim decisions [21].

### Electrification and Battery Risk

The IEA expects electric cars to pass 40% of global sales by 2030 [2], which will make battery valuation, thermal-event risk and charging liability core underwriting variables. Average premium per vehicle will rise until repair networks mature, then ease as certified technicians and pack-level repair become common. Second-life battery values will influence total-loss thresholds.

### Automation and Liability Realignment

Level 3 systems are reaching showrooms in Germany, Japan and the US, and the UK has legislated a liability model for self-driving vehicles [24]. Personal liability pools could contract in highly automated segments after 2032, while product liability, software-failure and cyber cover grow. Robotaxi fleets will buy cover as commercial programs, not individual policies.

### Platform and Embedded Distribution Economics

Embedded sales through OEMs, lenders and mobility apps will take a rising share of new business. That compresses commissions but lowers acquisition cost, turning some carriers into balance-sheet providers behind partner brands. Insurers that own customer data and claims experience will retain pricing power; those that do not risk becoming capacity suppliers.

## Segment Insights

## Motor Insurance Market Segmentation

### By Coverage Type

| Segment | Key Metric | Primary Demand Driver |
| --- | --- | --- |
| Third-Party Liability Insurance | 45.3% share | Statutory minimum cover requirements |
| Comprehensive Coverage | 7.9% CAGR | Rising vehicle values, lender requirements |

Within the Motor Insurance Market, Third-Party[Liability Insurance](https://www.marketresearchfuture.com/reports/liability-insurance-market-16205) remains the dominant coverage type with a 45.3% share, because nearly every jurisdiction mandates it at registration. Comprehensive Coverage is the fastest-growing segment at a 7.9% CAGR. Buyers of comprehensive car insurance increasingly add flood, theft and battery protection as EV prices rise, and lenders require own-damage cover on financed vehicles, steadily shifting premium mix toward broader protection.

### By Distribution Channel

| Segment | Key Metric | Primary Demand Driver |
| --- | --- | --- |
| Insurance Agents / Brokers | 44.1% share | Advisory placement for complex and commercial risks |
| Direct Sales | 9.1% CAGR | Mobile quote-to-bind and aggregator traffic |
| Bancassurance | USD 342.8 Billion | Bundling with vehicle loans |
| Other Channels | 9.9% share | OEM, dealer and mobility platform embedding |

Distribution in the Motor Insurance Market still leans on intermediaries: Insurance Agents / Brokers placed 44.1% of premiums, holding firm in fleet and multi-line accounts. Direct Sales are the fastest-growing channel at a 9.1% CAGR as mobile journeys deliver instant binding. Bancassurance remains large where vehicle loans dominate purchases, while Other Channels, led by OEM and dealer programs, capture buyers at the moment of sale.

### By Vehicle Type

| Segment | Key Metric | Primary Demand Driver |
| --- | --- | --- |
| Passenger Cars | 67.9% share | Large private fleet, rising vehicle values |
| Light Commercial Vehicles | 7.4% CAGR | E-commerce last-mile delivery fleets |
| Two-Wheelers | USD 205.7 Billion | Asian commuter mobility, compulsory cover |
| Heavy Commercial Vehicles | 8.6% share | Freight volumes, large liability verdicts |

Passenger Cars anchor the Motor Insurance Market with a 67.9% share of premiums, reflecting the size of the private fleet. Light Commercial Vehicles grow fastest at a 7.4% CAGR as parcel and grocery delivery fleets expand and electrify. Two-Wheelers form a large Asian premium pool, while Heavy [Commercial Vehicles](https://www.marketresearchfuture.com/reports/commercial-vehicle-market-34525)face elevated liability costs from litigation, prompting fleets to invest in cameras and driver coaching.

### By Vehicle Age

| Segment | Key Metric | Primary Demand Driver |
| --- | --- | --- |
| New Vehicles | 61.2% share | Lender-mandated own-damage cover |
| Used Vehicles | 6.4% CAGR | Longer ownership cycles, resale volumes |

New Vehicles lead the Motor Insurance Market by vehicle age with a 61.2% share, since financed purchases require full cover and higher sums insured lift premiums. [Used Vehicles](https://www.marketresearchfuture.com/reports/used-vehicle-market-7616) grow faster at a 6.4% CAGR as owners keep cars longer and used-EV volumes climb. Underwriters are refining used-vehicle pricing with service-history and battery-health data, narrowing the information gap that once limited cover options.

## Regional Market Share Analysis

## Regional Market Share Analysis

| Region | Key Metric | Primary Investment Themes |
| --- | --- | --- |
| North America | 33.4% share | Rate adequacy, behavior-based pricing, ADAS repair networks |
| Europe | USD 653.5 Billion | Directive harmonization, EV cover, comparison-site distribution |
| Asia-Pacific | 9.5% CAGR | Compulsory cover enforcement, NEV underwriting, two-wheeler policies |
| South America | 5.6% share | Theft protection, inflation-indexed pricing |
| Middle East & Africa | USD 105.1 Billion | Mandatory cover rollout, digital issuance |
| Total | USD 2,285.0 Billion | Global premium base, 2025 |

Regional performance in the Motor Insurance Market reflects three variables: vehicle-park maturity, average vehicle value and the strictness of compulsory cover. Mature regions grow on price and severity, while emerging regions grow on policy count.

### North America

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| United States | 91.9% of regional premiums | Litigation costs, high vehicle values, catch-up rate filings |
| Canada | USD 61.8 Billion | Provincial reforms, vehicle theft losses |

The United States dominates regional premiums, and its large writers have returned to underwriting profit after the 2022–2023 squeeze; Berkshire Hathaway reported GEICO's turnaround to an underwriting gain in 2023 [15]. NAIC market share data show the ten largest groups write about three-quarters of private passenger premiums [9]. In Canada, vehicle theft claim costs topped CAD 1 billion in 2022 according to the Insurance Bureau of Canada [18], and Ontario's reforms effective July 2026 make several accident benefits optional, reshaping product design in the country's largest provincial market.

### Europe

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| Germany | 19.8% of regional premiums | Large registered fleet, type-class rating |
| United Kingdom | USD 98.0 Billion | Claims inflation, pricing-practice rules |
| France | 4.6% CAGR | Bonus-malus system, EV uptake |
| Rest of Europe | 50.3% of regional premiums | Directive transposition, comparison-site growth |

Europe's framework tightened when member states transposed Directive (EU) 2021/2118 by December 2023, strengthening victim protection in cross-border accidents and insurer insolvencies [6]. The UK faced the steepest pressure: ABI data show motor claims payouts hit a record £11.7 billion in 2024 [10], and Aviva's 2025 acquisition of Direct Line created the country's largest motor writer [14]. Insurance Europe statistics confirm motor remains the largest non-life line across the continent [19], with Allianz and AXA holding broad multi-country books [22].

### Asia-Pacific

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| China | 38.5% of regional premiums | NEV adoption, commercial rate reform |
| Japan | USD 112.4 Billion | Ageing drivers, ADAS-equipped fleet |
| India | 12.1% CAGR | Liability enforcement, two-wheeler cover |
| Indonesia | 3.1% of regional premiums | Low penetration, financed purchases |
| Rest of Asia-Pacific | 9.0% CAGR | Motorization, digital issuance |

China sold more than 11 million electric cars in 2024 [2], and the National Financial Regulatory Administration backed a January 2025 platform to ensure NEV owners can obtain commercial cover after reports of declined applications [17]. Ping An and PICC continue to lead on scale and claims technology [23]. India's growth rests on enforcement and digital distribution, with IRDAI promoting add-ons such as pay-as-you-drive cover [7]. Japan's mature book grows slowly but benefits from high-value, ADAS-equipped vehicles.

### South America

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| Brazil | 54.2% of regional premiums | Theft-driven demand for full cover |
| Rest of South America | 5.3% CAGR | Inflation-indexed pricing, rising registrations |

Brazil anchors regional premiums, where high theft and robbery rates make own-damage and theft cover a near-standard purchase for financed vehicles. Insurers use vehicle tracking devices as an underwriting condition in high-risk cities, which lowers recovery costs. Elsewhere, persistent inflation forces frequent repricing and short policy terms, keeping nominal growth high even when real growth is modest [1].

### Middle East & Africa

| Country | Key Metric | Key Driver |
| --- | --- | --- |
| Saudi Arabia | 8.2% CAGR | Mandatory cover, expanding driver base |
| United Arab Emirates | USD 14.3 Billion | Digital issuance, high-value fleet |
| South Africa | 18.6% of regional premiums | Voluntary cover, large uninsured fleet |
| Rest of Middle East & Africa | 49.0% of regional premiums | Compulsory cover rollout |

Saudi Arabia's licensed driver base widened after women gained the right to drive in 2018, and compulsory cover rules feed steady policy growth. The UAE leads on digital issuance linked to vehicle registration. South Africa is an outlier: motor cover is voluntary, a large share of vehicles remain uninsured, and injury compensation runs through the fuel-levy-funded Road Accident Fund. Road-safety pressure across Sub-Saharan Africa supports compulsory cover reforms [5].

## Competitive Benchmarking

## Competitive Benchmarking

The Motor Insurance Market is fragmented. Market Research Future estimates the five largest writers together hold roughly 12–15% of global premiums, implying a Herfindahl-Hirschman Index well under 200. Concentration is far higher nationally: the ten largest groups write about three-quarters of US private passenger premiums [9], and a few state-linked and listed groups dominate China. Scale advantages show up in data assets, repair-network purchasing power and brand-led direct acquisition.

| Company | Est. Revenue Share Range | Key Offerings for Motor Insurance Market | Strategic Positioning |
| --- | --- | --- | --- |
| State Farm | ~2.5–3.5% | Personal motor policies, exclusive-agent network | Largest US writer by premiums; agent-led scale |
| Progressive | ~2.5–3.5% | Direct and agency motor, Snapshot behavior pricing | Data-driven pricing leader; fastest-growing US major |
| GEICO (Berkshire Hathaway) | ~1.8–2.6% | Direct personal motor, mobile claims | Low-cost direct model; restored underwriting margins |
| PICC Property and Casualty | ~2.0–3.0% | Compulsory and commercial motor cover in China | Largest Chinese non-life insurer; NEV focus |
| Allstate | ~1.5–2.3% | Personal motor, Milewise per-mile cover | Multi-brand strategy with agency and direct |
| Ping An Property & Casualty | ~1.5–2.2% | Digital motor policies, AI claims | Technology-led claims automation in China |
| Allianz | ~1.2–1.8% | Retail and fleet motor across Europe and Asia | Diversified global book; direct digital brands |
| Liberty Mutual | ~0.9–1.4% | Personal and commercial motor | Broad US and Latin American presence |
| Tokio Marine Holdings | ~0.8–1.3% | Motor cover in Japan and Asia | Leading Japanese writer; ADAS-linked products |
| AXA | ~0.7–1.2% | Retail and commercial motor | European and emerging-market footprint |
| Zurich Insurance Group | ~0.6–1.0% | Fleet and commercial motor | Commercial and corporate risk specialist |

## Recent News & Developments

## Recent News & Developments

The developments below shaped the Motor Insurance Market between 2023 and 2025.

- European Union (December 2023): Member states' deadline to transpose Directive (EU) 2021/2118 passed, strengthening victim protection for cross-border claims and insurer insolvency [6]
- Berkshire Hathaway (February 2024): Annual report confirmed GEICO returned to an underwriting profit in 2023 after rate increases and expense cuts [15]
- UK Parliament (May 2024): Automated Vehicles Act 2024 received Royal Assent, defining liability when vehicles drive themselves [24]
- UK Government (October 2024): Cross-government Motor Insurance Taskforce convened to examine rising premiums and affordability [13]
- National Financial Regulatory Administration (January 2025): Backed a platform to help NEV owners secure commercial cover after reports of declined applications [17]
- Progressive (February 2025): Reported 2024 net premiums written growth of about 20%, underlining direct-channel momentum [16]
- Aviva (July 2025): Completed the acquisition of Direct Line Insurance Group, creating the UK's largest motor insurer [14]

## Report Scope

| Parameter | Details |
| --- | --- |
| Market Scope | Gross written premiums for Third-Party Liability Insurance and Comprehensive Coverage on passenger and commercial vehicles, sold through agents, brokers, direct, bancassurance and embedded channels for new and used vehicles |
| Study Period | 2021–2035 |
| Base Year | 2025 |
| Historical Data | 2021–2024 |
| Forecast Period | 2026–2035 |
| Market Size in 2025 | USD 2,285.0 Billion |
| Market Size in 2035 | USD 4,192.9 Billion |
| CAGR (2026–2035) | 6.2% |
| Fastest Growing Segments | Direct Sales (9.1% CAGR); Comprehensive Coverage (7.9% CAGR); Light Commercial Vehicles (7.4% CAGR); Used Vehicles (6.4% CAGR) |
| Regions Covered | North America, Europe, South America, Asia Pacific, Middle East and Africa and ROW |
| Companies Profiled | State Farm, Progressive, GEICO (Berkshire Hathaway), PICC Property and Casualty, Allstate, Ping An Property & Casualty, Allianz, Liberty Mutual, Tokio Marine Holdings, AXA, Zurich Insurance Group |
| Valuation Currency | USD Billion |
| Methodology | 350+ primary expert interviews; bottom-up market sizing; top-down validation; data triangulation; scenario-based forecasting; real-time project tracking |

## Frequently Asked Questions

**Q: How does automated driving legislation change claims handling in the Motor Insurance Market?**
A: UK law makes the insurer to compensate victims first when a vehicle is driving itself [24]. The insurer then recovers costs from the responsible self-driving entity, making subrogation a core claims capability.

**Q: What should fleet operators prioritize when procuring commercial motor cover?**
A: Claims turnaround and repair-network access often matter more than headline premium, because vehicle downtime costs exceed most deductibles. Operators should also confirm who owns driving data and whether loss analytics are shared for driver coaching [21].

**Q: How are car-sharing and subscription vehicles insured in the Motor Insurance Market?**
A: Platforms usually buy a master policy that switches cover between owner and user by trip or by mile. Pricing draws on platform trip data rather than individual driver history [21].

**Q: Why do investors track combined ratios more closely than premium growth?**
A: In the Motor Insurance Market, rate-driven premium growth can mask deteriorating loss trends. A combined ratio below 100% confirms profitable underwriting, and GEICO's 2023 turnaround showed how quickly valuations respond [15].

**Q: How does gap cover differ from comprehensive cover?**
A: Comprehensive cover pays a vehicle's market value after a total loss. Gap cover pays the difference between that payout and the outstanding loan balance, which matters most for fast-depreciating financed EVs [2].

**Q: Which capital and reporting rules affect new entrants to the Motor Insurance Market?**
A: Solvency II sets risk-based capital requirements that weigh heavily on long-tail injury reserves in Europe. IFRS 17 also changed profit reporting, so entrants must budget for actuarial and systems upgrades [25].

**Q: What integration challenges arise when insurers use OEM connected-car data?**
A: Data formats differ by manufacturer, and drivers must give explicit consent under GDPR and similar laws [21]. Most insurers therefore use aggregators that normalize feeds, adding cost but shortening integration timelines.


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