Table of contents:
Motor Insurance In India – Marking by type of car insurance (own damage, third party); Based on application (commercial (light four-wheeled vehicles, heavy four-wheeled vehicles, other commercial vehicles), private motorized vehicles), based on distribution channels (individual agents, brokers, banks, etc.); and Region (North, East, West and South)
Code: UMBF212864 Category: Banking, Financial Services & Insurance, Industry Reports Tags: Indian Motor Insurance Market 2024, Indian Motor Insurance Market Analysis, Indian Motor Insurance Market Growth, Indian Motor Insurance Market Share, Size, Auto Insurance Market Trends Indian Motoring
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The Indian auto insurance market was valued at USD 12.15 billion in 2023 and is expected to grow at a strong CAGR of around 6.31% during the forecast period (2024-2032). Due to the increasing growth of the automotive sector in India.
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Car insurance is part of general insurance which aims to provide comprehensive protection to owners of various vehicle categories in the event of repairs and theft. These insurance policies are offered by various public and private sector financial institutions and banks regulated by the Insurance Regulatory Development Authority of India (IRDAI). The insurance policy covers most non-consumable items and repairs if damage occurs during the coverage period.
The Indian auto insurance market was valued at USD 12.15 billion in 2023 and is expected to grow at a strong CAGR of around 6.31% during the forecast period (2024-2032). One of the factors determining market growth is the increase in car sales in the republic. Considering the growing middle class population as well as increasing disposable income in the country, the automotive industry has benefited from increased sales growth in recent years.
This increase in sales has led to a demand for civil liability and third party insurance, which is mandatory along with paying road tax when purchasing any car. Moreover, with various policy changes, demand for car insurance will continue to increase in the coming years.
Additionally, motor insurance accounts for a significant portion of the general and health insurance market in India. According to IRDAI, the total motor vehicle insurance premium in India was INR 70,433.48 million in 2021-22, increasing to INR 81,280.04 million in 2022-23. The public sector holds the majority of the share of car insurance, with around 80% of the market.
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This section discusses key market trends impacting various segments of the motor vehicle insurance market in India as identified by our team of research experts.
Electric vehicles are a growing segment due to customer focus on sustainability. Electric vehicles offer a number of advantages over conventional domestic fuel-powered vehicles, such as lower long-term operating costs, zero emissions and more. Car insurance is expected to increase in the coming years. According to Car Sales data, total EV sales in 2023 will be 1.53 million, up 50% from 2022.
Additionally, the government initiative of offering free road tax in many states has further increased sales of electric vehicles in the car, two-wheeler and e-rickshaw categories, which will contribute to a larger car insurance market in India.
Considering the popularity of cars in the electric vehicle category, demand for AC in this segment will increase in the coming years, namely 2024-2032.
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North India has a significant share in the car insurance market. One of the determining factors for the growth of northern India is the high sales of cars in previous years. This region includes states like Uttar Pradesh, New Delhi, Punjab, Haryana, Jammu and Kashmir, etc., which have a sizeable population and have seen a steady increase in car ownership in recent years. According to the Society of Indian Automobile Manufacturers (SIAM), Uttar Pradesh, New Delhi and Haryana accounted for 10.04%, 5.94% and 6.60% share of vehicle sales in India in 2023. A similar trend is also seen in two-wheeler sales, with sales increases of 14.35%, 2.5% and 2.89% in the same period.
With the high level of car sales in the North India region, the demand for car insurance is expected to increase in the coming years, namely 2024-2032.
The Indian auto insurance market is highly competitive and fragmented with many regional and market players. Key players are adopting various growth strategies to increase their presence in the market such as partnerships, agreements, collaborations, new product launches, geographical expansion, and mergers and acquisitions. Major players in the market include ICICI Lombard General Insurance, Bajaj Allianz General Insurance, Tata AIG General Insurance, HDFC ERGO General Insurance, New India Assurance Co Ltd, United India Insurance Company Ltd, The Oriental Insurance Co. Bharti AXA General: Insurance, Reliance General Insurance and IFFCO Tokyo General Insurance.
In 2022, IRDAI permitted general insurance companies to introduce ‘Pay As You Ride’, ‘Pay As You Drive’ and ‘floating’ policies for vehicles belonging to the same owner, two-wheelers and cars as an addition to car insurance policies.
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In 2023, ICICI Lombard launched the AI-powered digital campaign ‘Claim Your Claim’. This campaign aims to penetrate the under-penetrated general insurance market in India.
The car insurance market in India can be further customized to suit other needs or market segments. Additionally, UMI understands that you may have your own business needs; therefore, do not hesitate to contact us for a report that fully meets your needs.
Answer: The Indian auto insurance market is valued at USD 12.15 billion in 2023 and is expected to grow at a CAGR of 6.31% during the forecast period (2024-2032).
Answer: The increasing demand for car insurance in the automotive sector is one of the main factors driving this growth.
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Historical market analysis, current market assessment and future market forecast of the Indian auto insurance market are the three key steps taken to create and analyze the adoption of Indian auto insurance across key regions in India. In-depth secondary research has been conducted to gather historical market figures and estimate the current market size. Second, many conclusions and assumptions are taken into account to validate this idea. Additionally, in-depth initial interviews were also conducted with industry experts across the value chain of the Indian auto insurance market. After predicting and validating the market size through primary interviews, we use a top-down/bottom-up approach to predict the overall market size. Then, market discrimination and data triangulation techniques are adopted to estimate and analyze the market size of industry segments and sub-segments. The detailed methodology is explained below.
A detailed secondary study has been carried out to obtain the historical size of the Indian auto insurance market through internal company sources such as annual reports and financial statements, performance presentations, press releases, etc. And external sources include newspapers, news stories and articles, government publications: , competitor publications, industry reports, third-party databases, and other credible publications.
After obtaining the historical size of the Indian auto insurance market, we have conducted a thorough secondary analysis to gather historical market insights and market shares for key regions of various segments and sub-segments. The main segments included in this report are by vehicle insurance type, by application, and by distribution channel. Additional analysis was conducted at the regional/national level to assess the global applicability of the testing model in the region.
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After obtaining the historical market size of various segments and sub-segments, we have carried out a detailed factor analysis to estimate the current size of the Indian auto insurance market. Next, we conduct factor analysis using dependent and independent variables such as type of car insurance, application and distribution channels in the Indian car insurance market. A thorough analysis has been carried out for the demand and supply scenario considering key partnerships, mergers and acquisitions, business expansions and product launches in the Indian auto insurance market.
Current market size. Based on the actionable insights from the above 3 steps, we arrive at the current market size, leading players in the Indian auto insurance market, and segment market share. All required stock split and market breakthrough percentages are determined using the secondary approach described above and verified through primary interviews.
Assessment and forecasting. For market assessment and forecasting, weightage has been assigned to various factors, including drivers and trends, constraints and opportunities available to stakeholders. After analyzing these factors, an appropriate forecasting method, i.e. top-down/bottom-up approach, has been applied to arrive at market forecasts up to 2032 for various key market segments and sub-segments in India. The research methodology adopted to estimate market size includes:
Primary research. In-depth interviews were conducted with key opinion leaders (KOL), including senior executives (CXO/VP, Head of Sales, Head of Marketing, Head of Operations, Regional Head, Country Head, etc.). in key areas. The main results are then summarized and statistical analysis is performed to confirm the stated hypothesis. Input from primary research is combined with secondary findings, turning information into actionable knowledge.
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Data triangulation
