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Motor Vehicle Insurance - North America

North America

The Motor Vehicle Insurance market market in North America is expected to witness significant growth in the coming years.
According to projections, the market size, measured by gross written premium, is forecasted to reach a staggering US$1.36tn in 2024.
This indicates a robust demand for insurance coverage in the region.
Furthermore, the average spending per capita in the Motor Vehicle Insurance market market is estimated to be US$2.67k in 2024.
This showcases the importance of insurance protection for individual vehicle owners in North America.
Looking ahead, the market is anticipated to continue its upward trajectory, with an annual growth rate of 2.14% (CAGR 2024-2028).
This steady growth is expected to result in a market volume of US$1.48tn by 2028, further solidifying the significance of the Motor Vehicle Insurance market segment in the region.
In comparison to other countries globally, the United States is set to lead the way in terms of gross written premium generation.
It is projected to generate US$1,338.0bn in 2024, showcasing its dominance in the North American Motor Vehicle Insurance market market.
Overall, these figures highlight the immense potential and importance of the Motor Vehicle Insurance market market in North America, with the United States taking the lead position in terms of premium generation.
In North America, the Motor Vehicle Insurance market is witnessing a shift towards usage-based policies to better align premiums with individual driving habits.

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Analyst Opinion

The motor vehicle insurance market serves as a vital safeguard for vehicle owners, protecting against various risks and liabilities. In this dynamic sector, several discernible trends are shaping the landscape of motor vehicle insurance, while specific indicators offer insights into its performance and stability.

Trends on the market:

Usage-Based Insurance (UBI): Usage-based insurance programs, which track driving behavior through telematics, are gaining popularity. They allow policyholders to pay premiums based on their actual driving habits, promoting safe driving.
Claims Automation: Insurers are streamlining the claims process through automation, reducing claims processing times and enhancing the overall customer experience.
Sustainable and Electric Vehicle Coverage: The market is adapting to the growing popularity of electric vehicles and the demand for sustainable insurance options that cover green vehicle technology.
Advanced Driver Assistance Systems (ADAS): Motor vehicle insurers are actively considering the impact of ADAS on accident frequency and severity, influencing underwriting and pricing.
Eco-Friendly Practices: Many insurers are adopting eco-friendly practices by offering paperless policies, encouraging policyholders to reduce their carbon footprint.

Underlying Indicators:

Accident Frequency and Severity: Tracking accident frequency and severity is pivotal for assessing the financial health of motor vehicle insurers. Changes in these indicators can signal emerging risks or shifts in market dynamics.
Safety Technologies: The adoption of advanced safety technologies in vehicles, such as ADAS and autonomous driving systems, can impact the frequency and severity of accidents, influencing claims costs and underwriting.
Regulatory Compliance: Staying compliant with evolving traffic and safety regulations is essential for motor vehicle insurers to operate within legal boundaries and adapt to changing road safety standards.
Customer Satisfaction and Loyalty: Customer satisfaction and loyalty metrics are key in evaluating the competitiveness of motor vehicle insurance products and the effectiveness of customer service efforts.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.