About the Motor Vehicle Insurance Market
Motor vehicle insurance policy is the guarantee of compensation provided to a policyholder, wherein the insurer will pay for the repair of accidental damages, theft, or fire (among others) to a third party's property or the insured vehicle.
At the end of 2014, the guaranteed asset protection (GAP) insurance was introduced. It is a supplementary cover taken along with the standard motor insurance policy. It includes certain types of losses that are not covered under the standard policy. For instance, if a person avails GAP insurance, then the insurer will pay the balance loan amount of the vehicle in case of theft or if the automobile is damaged badly. In September 2015, rules proposed by the Financial Conduct Authority (FCA) came into effect; these rules were designed to navigate issues arising from the sales of GAP insurance provided by the motor vehicle industry.
Technavio’s analysts forecast the global motor vehicle insurance market to grow at a CAGR of 5.91% during the period 2016-2020.
Covered in this report
The report covers the present scenario and the growth prospects of the global motor vehicle insurance market for 2016-2020. To calculate the market size, the report considers two types of end users:
Technavio Announces the Publication of its Research Report – Global Motor Vehicle Insurance Market 2016-2020
Technavio recognizes the following companies as the key players in the global motor vehicle insurance market: Allianz, AIG, Allstate Insurance, Berkshire Hathaway, People’s Insurance Company of China, and Ping An Insurance.
Other Prominent Vendors in the market are: AXA, Munich Re, and Zurich.
Commenting on the report, an analyst from Technavio’s team said: “A trend that is already impacting the market is the implementation of advanced analytics tools to reduce fraudulent claims. According to the National Insurance Crime Bureau (NICB), insurance fraud is the second biggest white-collar crime in the US after tax evasion. Advanced tools, such as big data analytics and geospatial analysis, are making it easier for insurance companies to reduce losses stemming from fraud claim. Technavio expects that top insurers will form partnerships with analytics services providers to speed up payment processes and improve customer satisfaction during the forecast period.”
According to the report, a key growth driver is the mandate to buy insurance policies. A motor vehicle insurance covers any financial risk that can crop up while driving the vehicle. In other words, an insurance company will cover losses arising from theft, damages, or accidents - if such incidents are covered under the policy. In India, the Motor Vehicles Act specifies that all vehicles should have an insurance policy, or a third-party liability cover. A third-party insurance policy will cover the financial losses incurred in case of an accident, and may or may not cover the losses arising from damages sustained by the owner's car.
Further, the report states that one challenge that could restrict market growth is the risk variables in the underwriting process.
Allianz, AIG, Allstate Insurance, Berkshire Hathaway, People’s Insurance Company of China, Ping An Insurance, AXA, Munich Re, Zurich.
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